Trump Media Group is laying out AI and encryption ETF to expand the development path of Truth Social.

Trump Media & Technology Group (TMTG) has officially applied for two trademarks, "Truth Social AI" and "Truth Social AI Search", aiming to integrate artificial intelligence features into the Truth Social platform. Although specific product details have not been disclosed, the plan is to create a "non-woke, reliable information and entertainment platform." Additionally, the company is actively positioning itself in encryption assets, including establishing a Bitcoin treasury and applying for multiple encryption ETFs. Despite the AI and Web3 expansion plans stimulating a 5.5% rise in stock prices, TMTG still faces financial challenges, including single revenue streams and quarterly losses exceeding $31 million.

AI Trademark Applications Implemented, Truth Social Explores Functionality Upgrades According to a press release issued by the company on Wednesday, Trump Media has submitted trademark applications for "Truth Social AI" and "Truth Social AI Search," marking the platform's plan to introduce AI search and recommendation features. CEO Devin Nunes stated that the initiative aims to position Truth Social as a hub for "trustworthy information and non-woke content." Although the details of the features and the release timeline have not been disclosed, this move represents the platform's effort to evolve from traditional social media to a broader technology platform.

User base is limited, growth potential awaits release As of January 2025, Truth Social has 6.3 million users, far below Facebook's 3.1 billion monthly active users in 2023, and the platform's size is still in its early stages. Although the platform is committed to attracting more users through technological upgrades, user growth still faces significant challenges.

Encryption layout fully expanded, fundraising supports expansion TMTG recently raised $2.3 billion through stock issuance and convertible bonds, which will be used for platform expansion plans, including the establishment of a Bitcoin-backed corporate treasury. In addition, the company has submitted multiple encryption ETF applications to the SEC, including the Truth Social Bitcoin ETF, the Bitcoin-Ethereum Dual Coin ETF, and the "Blue Chip Encryption ETF" which includes Solana, Cronos, and XRP.

Stock price rebounds in the short term, financial risks remain Driven by AI program incentives, TMTG's stock price rose 5.5% on Wednesday, outperforming the Nasdaq index. However, the company reported a net loss of $31.7 million in the first quarter, with revenue of only $8.8 million, largely dependent on advertising revenue and lacking revenue diversification. In the latest financial report, the company admitted it may continue to face significant losses in the future, especially during the streaming and infrastructure development phases.

Conclusion Trump Media is applying for trademarks related to AI technology and encryption financial products, attempting to open new growth channels for Truth Social. In the context of weak user growth and ongoing losses, the company is pushing for digital transformation in a high-risk, high-reward manner. Investors need to closely monitor the actual implementation of AI products, user growth effects, and the progress of encryption ETF approvals to assess the company's long-term sustainability and capital efficiency.