TMTG Targets Strategic Split: Truth Social Set for Independent Public Debut Amid Fusion Energy Pivot
Trump Media & Technology Group (TMTG), the entity established by President Donald Trump, is exploring a significant corporate restructuring that would see its flagship social media platform, Truth Social, spun off into a separate publicly traded entity.
The company confirmed on Friday that it is currently in negotiations with TAE Technologies and Texas Ventures Acquisition III to facilitate the transition. Under the proposed plan, existing TMTG shareholders would receive equity in the new spin-off, which would then go public via a merger with a special purpose acquisition company (SPAC).
A Tale of Two Strategies
This maneuver is designed to decouple the company’s digital media wing from its ambitious new venture into nuclear fusion. By splitting the operations, TMTG aims to create two distinct "pure play" investment opportunities:
1. Truth Social: A dedicated media and digital platform.
2. TMTG Energy: A fusion-focused business aiming to build utility-scale plants to power energy-intensive sectors like AI data centers.
Financial Health and Market Pivot
The proposal comes as TMTG navigates a complex financial landscape. The company reported a net loss of $712.3 million for 2025, a sharp increase from the previous year's $400.9 million loss. Much of this deficit is attributed to paper losses on volatile digital assets, specifically Bitcoin and Cronos.
Despite these losses, TMTG’s balance sheet remains robust, ending the year with $2.5 billion in financial assets—a three-fold increase from 2024. However, core revenue growth has been modest, with net sales moving from $3.62 million to $3.68 million over the last year. This slow growth in the media sector, coupled with stiff competition from tech giants, has prompted the pivot toward the $6 billion merger with California-based TAE Technologies, a leader in clean fusion energy backed by the likes of Google and Chevron.
The primary objective is to separate the social media operations of Truth Social from TMTG’s newer fusion energy interests, allowing both divisions to pursue independent growth strategies as separate public companies.
If the deal proceeds, eligible shareholders will be issued shares in the new Truth Social entity, which will then merge with a SPAC to trade publicly on its own.
The $712.3 million loss was largely driven by "unrealized losses," meaning the fluctuating market value of the company’s holdings in Bitcoin and the Cronos cryptocurrency.
The merger represents a strategic pivot into the energy sector. TMTG aims to leverage TAE’s advanced fusion technology to meet the massive electricity demands of AI data centers and utility grids
No. TMTG has stated that while discussions with Texas Ventures Acquisition III are ongoing, no definitive agreement has been reached yet
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