Donald Trump’s media company – which owns the Truth Social platform favored by the US president – posted a $238m loss in the second quarter.
Trump Media & Technology on Monday reported that losses in the three months through June came as the company branched into new ventures including crypto. The company’s new chief executive, Kevin McGurn, announced at a conference call about the earnings that after a yearlong effort to expand into online betting and crypto, the company would be refocusing on social media.
“We made the disciplined choice to pivot in order to invest more time and resources in our most important initiatives,” McGurn said. “We will say no to things or change course as warranted.”
One key to the company’s new approach will be a a service called Truth API which will sell early access to Truth Social posts by Trump and other top users to Wall Street trading firms – allowing them to profit from the moves in stocks, bonds and interest that often follow major policy announcements from Trump on the platform.
The new Truth API service is charging $60,000 to $100,000 a month, McGurn said, adding that Trump Media has already signed up 10 customers, mostly so-called high frequency trading firms that buy and sell in milliseconds.
The paid service – and Trump Media – have been criticized by government watchdogs. “[Trump is] selling expedited, privileged access to information about what he is doing as president,” said Kathleen Clark of Washington University School of Law and an expert in government conflicts of interest rules told the Associated Press last month. “It’s yet more brazen corruption, an improper exploitation of government power to enrich himself.”
McGurn has dismissed such concerns, noting that other companies sell special, fast access to traders.
“Providing licensed real-time public data through commercial APIs is a well-established business practice across the technology, financial information and media industries,” he said. “This is no different.”
While Trump Media is generally refocusing on social media, McGurn said it will continue with a previously announced new venture: nuclear fusion. Trump Media will still aim to close a previously announced merger with energy company TAE Technologies by the end of the year, he said.
In the second quarter, Trump Media posted $1.7m in revenue, more than double from a year earlier.
The company has $1bn in debt from special convertible notes that do not come due until 2028, but the lenders have an option to demand they be cashed out in November, a possible hit to finances though the company appeared to have ample cash.
At the end of the quarter, Trump Media had more than $400m in cash and short term investments. It also had $1.2bn in bitcoin and bitcoin-related assets.
Associated Press contributed reporting
