Trump Media Explores Truth Social Spin-Off as Stock Languishes 89% Below Peak

Trump Media & Technology Group disclosed early-stage talks to spin off Truth Social into a standalone publicly-traded entity, a move aimed at unlocking shareholder value as DJT stock trades near all-time lows. The proposed transaction would separate the social media platform from TMTG’s planned merger with nuclear fusion company TAE Technologies, creating two distinct pure-play companies. According to a Globe Newswire release on February 27, 2026, TMTG is in discussions with TAE Technologies and special purpose acquisition company Texas Ventures Acquisition III to distribute Truth Social shares to existing TMTG shareholders prior to the TAE merger closing. SpinCo would then merge with Texas Ventures III, while TAE’s fusion energy assets and certain TMTG operations would remain with the continuing public company. No definitive agreement has been reached, and the companies cautioned there is no assurance any transaction will occur.

The Valuation Problem

DJT stock has collapsed from highs above $100 in 2022 to around $11 today, erasing roughly three-quarters of its value since early 2024 peaks above $40. According to TechStock² (https://ts2.tech/en/trump-media-djt-stock-on-november-29-2025-big-name-buyers-step-in-as-shares-stay-70-below-their-peak/), the decline has wiped out approximately $5 billion in paper wealth for Trump’s majority stake. The mismatch between Valuation and fundamentals has grown acute: TMTG reported just $972,000 in revenue for Q3 2025 against a net loss of $54.8 million (Wikipedia data from SEC filings).

A spin-off could address the valuation opacity. Currently, DJT stock bundles Truth Social’s Social Media operations with a $6 billion pending merger with TAE Technologies’ speculative fusion energy business, Bitcoin treasury holdings valued at $3.1 billion, and nascent financial services offerings under the Truth.Fi brand. Separating these assets would allow investors to price Truth Social’s actual business—approximately 2.1 million monthly active users generating sub-$1 million quarterly revenue—without the distortions of crypto holdings and energy tech moonshots.

The Monetization Challenge

Truth Social’s user growth has stalled and monetization remains elusive. The platform recorded 2.1 million monthly active users in September 2025, down from peaks of 5.9 million in 2024 (SEO Sandwich: https://seosandwitch.com/truth-social-statistics/). Projected 2026 revenues stand at just $4.5 million—per investor presentations cited by SEO Sandwich— a fraction of the $3.67 billion TMTG originally projected for 2026 in its 2021 pitch deck.

The advertising market has proven hostile, with 45% of surveyed marketers would not consider advertising on Truth Social (SEO Sandwich: https://seosandwitch.com/truth-social-statistics/). User engagement lags competitors; Truth Social users open the app 1.8 days per week versus 4.6 days for Facebook and 3.6 days for X, according to ElectroIQ data (https://electroiq.com/stats/truth-social-statistics/). The vast majority of Truth Social users—87%—also use Facebook, and 56% use X, suggesting the platform functions as a supplement rather than a replacement for mainstream networks.

Strategic Rationale

The spin-off proposal follows TMTG’s December 2025 announcement of an all-stock merger with TAE Technologies valued at over $6 billion. That transaction would combine Trump Media’s $3.1 billion balance sheet with TAE’s nuclear fusion technology, creating a conglomerate spanning social media, streaming video, financial services, and speculative energy generation. Separating Truth Social into SpinCo would allow each business to pursue distinct capital allocation strategies and attract different investor bases.

For Truth Social, independence could mean cleaner operating metrics. The platform would no longer be valued alongside Bitcoin volatility or fusion energy timelines. For the TAE-TMTG combination, shedding the social media business removes a money-losing operation with structural challenges in favor of focusing on energy infrastructure buildout. TMTG CEO Devin Nunes received $47 million in compensation in 2024 (Wikipedia), a figure that might draw less scrutiny if tied to capital-intensive energy projects rather than a social network with sub-$1 million quarterly revenue.

What to Watch

Monitor whether TMTG and TAE reach definitive agreements on both the merger and spin-off by mid-2026. Shareholder approval will be critical—institutional investors hold only 4-5% of DJT stock, leaving retail and insider votes decisive. Truth Social’s user trajectory through Q2 2026 will signal whether the platform can stabilize its base or faces continued attrition. The SEC will scrutinize the SPAC structure with Texas Ventures III, particularly given TMTG’s history of regulatory investigations. If the spin-off proceeds, SpinCo’s ability to raise capital independently will test investor appetite for a niche social network with challenged monetization divorced from Trump’s broader corporate empire.