Trump Media & Technology Group, the entity behind the social media platform Truth Social, has disclosed a significant financial setback, with a reported loss of $238 million in the second quarter. This drop comes as the company refocuses its efforts on its primary social media operations, having previously ventured into areas such as cryptocurrency.
During this quarter, the company saw a revenue of $1.7 million, achieving more than twice the revenue compared to the same period the previous year. Kevin McGurn, the newly appointed CEO, stated that the company would channel its resources into enhancing its social media offerings. However, it will continue to pursue selected initiatives, including its planned merger with TAE Technologies, a company in the nuclear fusion sector.
In addition to these developments, Trump Media has introduced Truth API, a subscription service designed for financial firms. This service offers early access to posts from Donald Trump and other influential figures on Truth Social. With a monthly subscription fee ranging from $60,000 to $100,000, the service has already secured 10 clients, mainly from high-frequency trading firms.
Financially, Trump Media ended the quarter with assets that include over $400 million in cash and short-term investments. The company also holds approximately $1.2 billion in bitcoin and related assets. On the liabilities side, the company has around $1 billion in debt, primarily through convertible notes set to mature in 2028.