Trump Media & Technology Group saw its stock tumble after revealing it lost $58 million last year on revenues of just $4.1 million

Donald Trump has suffered a $2 billion blow to his wealth after shares in his company Truth Social slumped by around a quarter.

Trump Media & Technology Group (TMTG) – the parent company of Trump’s social media platform – saw its stock tumble after revealing it lost $58 million last year on revenues of just $4.1 million. That compares to a market value of $6.3 billion.

The company also warned of a “substantial doubt that TMTG will have sufficient funds to meet its liabilities as they fall due”.

The financial disclosures triggered a sell-off that saw shares in TMTG decline nearly 24 per cent.

It comes only a week after the company began trading on the Nasdaq after a merger with a listed cash shell. Shares surged over 50 per cent after the deal completed and TMTG began trading under the ticker DJT.

Truth Social had published only limited details about its financial performance in 2023 ahead of the completion of the merger.

When TMTG debuted, the share price surge had propelled Trump into the ranks of the world’s 500 richest people thanks to his 57.3 per cent stake in the firm.

Nonetheless, the collapse in the firm’s share price reduced the value of his position in TMTG from nearly $5.5 billion last week to around $3.5 billion as of Monday evening.

Trump is unable to sell any shares in the company for six months under the terms of the listing agreement.

The value of his stake has been seen as a key financial lifeline. He was handed a $454 million fine for fraudulently inflating his net worth, although that penalty was later reduced.