Donald Trump's venture is not limited to the T1 smartphone. Years ago, people were surprised to see Truth Social, a social media platform similar to Elon Musk's X (formerly Twitter).
This time, Trump Media & Technology Group is considering a game-changing corporate restructuring that could affect its long-term strategy. The company confirmed it is exploring a plan to spin off Truth Social into a separate publicly traded entity, hinting at a decisive shift beyond its core social media business.
Truth Social Spin-Off Strategy Gains Traction
TMTG is reportedly in active negotiations with TAE Technologies and Texas Ventures Acquisition III regarding the proposed transaction. Under the restructuring plan, eligible shareholders would receive shares in a newly formed social media company, which would then merge with a special purpose acquisition company.
According to Reuters, this SPAC merger structure would allow Truth Social to operate independently while unlocking capital for broader strategic initiatives.
By separating its digital media operations from emerging energy investments, TMTG aims to create two distinct public companies with focused growth trajectories: one centered on social media engagement and the other targeting advanced clean energy innovation.
Compounding Financial Losses Influence Corporate Pivot
The restructuring discussions follow mounting financial pressure. TMTG reported a net loss of $712.3 million in 2025, significantly higher than the $400.9 million loss recorded the previous year. Much of the deficit stemmed from unrealized losses tied to bitcoin and Cronos cryptocurrency holdings.
Despite these setbacks, the company ended 2025 with $2.5 billion in financial assets, more than tripling its prior-year total. Revenue growth, however, remained limited, with net sales reaching $3.68 million.
$6 Billion Fusion Energy Deal Signals New Direction
In December, TMTG agreed to merge with TAE Technologies in an all-stock deal valued at more than $6 billion. The California-based firm, backed by investors such as Google and Chevron, is developing utility-scale nuclear fusion power plants aimed at meeting rising electricity demand from AI data centers and industrial infrastructure.
Although no final agreement has been announced regarding the Truth Social spin-off, TMTG's dual-track strategy highlights its ambition to evolve from a politically driven social platform into a diversified technology and energy enterprise positioned for next-generation growth.
Outside Truth Social's circle, Trump requested the government to stop using Anthropic AI. He wrote in a Truth Social post that they wouldn't "do business with them again."
The move follows after the Pentagon expressed sentiment to drop Anthropic AI over ethical limits on military use.
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