Trump Media & Technology Group, the parent company of Truth Social, has announced a significant financial loss of $238 million in the second quarter. This comes as the company redirects its focus back to its core social media operations after having ventured into cryptocurrency and various other projects.
Despite the substantial loss, the company reported a revenue of $1.7 million for the quarter, marking a more than two-fold increase from the same period last year. Kevin McGurn, the newly appointed CEO, emphasized that Trump Media will now concentrate its resources on strengthening its social media business. However, it will also continue to pursue selected initiatives, such as its planned merger with TAE Technologies, a company specializing in nuclear fusion.
In an additional move, Trump Media launched Truth API, a subscription service aimed at financial firms. This service offers early access to posts from Donald Trump and other high-profile users on Truth Social. The subscription fee for this service ranges from $60,000 to $100,000 monthly, and it has already secured 10 customers, mainly high-frequency trading firms.
Financially, at the close of the second quarter, Trump Media held over $400 million in cash and short-term investments. The company also had approximately $1.2 billion in bitcoin and related digital assets. However, it is also managing about $1 billion in debt through convertible notes set to mature in 2028.