There’s a third explanation: He’s a fairly bad businessman but Twitter was always expected to lose money, and the purpose of owning it is to use it as a cost center for massive political influence.
I’m not necessarily espousing this theory, I have no real evidence either way, but lots of billionaires buy media outlets so they can direct public sentiment. Twitter, managed correctly, could have been a pretty good way to do that, but even within that lens it has been managed very badly, so IDK