Synopsis– Trump Media, the parent company behind Truth Social, is gearing up for a major push into the crypto world. As it faces mounting financial pressure including a $20 million net loss in the second quarter the company is accelerating plans to launch a utility token and digital wallet. These steps signal an ambitious fintech pivot that could define the company’s future, but not without new risks.
More than Just a Payment Tool
Trump Media confirmed in its latest SEC filing that it will launch a utility token as part of a new rewards program linked to its Truth Social and Truth+ streaming platforms. Users will initially use these tokens to pay for subscriptions. Over time, the company plans to expand token functions to include premium service features, such as verification badges and advanced posting tools.
The initiative builds on a July announcement when the company unveiled its “Patriot Package” beta subscription plan. Subscribers could earn monthly “gems,” with Trump Media crowdsourcing feedback from users for design ideas. Although no exact rollout date has been provided, the project is picking up pace and could launch by the end of 2025. A digital wallet, currently in development, will support these transactions. Trump Media’s fintech arm, Truth.Fi, will oversee the wallet’s integration and is targeting a broader suite of digital finance products. The wallet aims to streamline payments, rewards, and verification within the expanding Truth ecosystem.
Financial Struggles Continue
Despite heavy promotion of its crypto strategy, Trump Media’s core financials raise eyebrows. The company reported a $20 million net loss for the second quarter of 2025. That loss, up from $16.4 million in the same period in 2024, was mainly due to non-cash expenses especially $20.5 million in stock-based compensation and depreciation, plus significant legal and operational costs stemming from a 2024 SPAC merger and related lawsuits.
However, not every number spelled doom. Trump Media marked its first-ever positive operating cash flow, recording $2.3 million. This figure was largely bolstered by $16.8 million in interest income and $11.1 million from other investments. Overall financial assets surged 800% to reach $3.1 billion. This leap is mostly because of a bold decision to buy $2 billion in Bitcoin and allied securities, making Trump Media one of the world’s largest public holders of Bitcoin.
Crypto Strategy
Much of Trump Media’s new value stems from its crypto holdings. In July 2025, the company used funds from a $1.5 billion stock sale and $1 billion bond issuance to buy up its massive crypto stash. About two-thirds of its $3 billion liquid assets are now tied to digital currencies and crypto securities.
CEO Devin Nunes touted this approach as a way to guarantee “financial freedom” and shield against risks in traditional banking. On the other hand, the company’s foray into financial products continues. Truth.Fi has filed applications for several crypto exchange-traded funds (ETFs), including those tracking Bitcoin, Ethereum, and a “Crypto Blue Chip” index. The SEC is still reviewing the ETF proposals, which could place Truth Social at the heart of the U.S. crypto trading market.
Market and Political Risks
While Trump Media frames its crypto pivot as a path to long-term profits, challenges remain. Its user base is still far smaller than social media giants like X or Facebook, raising questions on whether a token-driven rewards system can deliver meaningful user growth. Skeptics also highlight risks tied to concentrated crypto holdings and potential conflicts of interest, since President Donald Trump is the company’s majority owner and his administration has favored crypto deregulation.
Critics warn that the new token and wallet could prioritize short-term revenues over growth, especially as TMTG’s core platform continues to lag behind rivals. Market reactions have been mixed. TMTG shares dropped 3.8% to $16.92 on August 4, 2025, and are down over 50% for the year. The announcement of the utility token also coincided with a steep 10% drop in the price of $TRUMP, a meme coin not linked to the official company token.
The company’s heavy dependence on volatile crypto assets and legal concerns combine with lingering doubts about long-term sustainability. As Trump Media moves to expand Truth+ internationally and experiment with new advertising and pay-per-view models, only time will tell if its digital gamble will pay off or leave shareholders wanting more.
Written By Fazal Ul Vahab C H
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