Trump Media reports $238m loss as crypto falls
The firm says it will refocus on its social media mission, which includes a controversial service that sells faster access to Trump's market-moving posts.
Trump Media & Technology Group, the company behind former President Donald Trump's Truth Social platform, reported a $238 million loss between April and June, largely attributed to its expansion into non-media ventures, including cryptocurrencies. This quarterly deficit represents a more than tenfold increase compared to the same period last year.
Launched in 2022, Truth Social is operated by Trump Media, which stated it would now re-center its focus on its core social media mission. This includes a contentious new service that provides paying subscribers with expedited access to Trump's posts, which often influence market trends. Interim CEO Kevin McGurn announced on Monday that over 10 customers have already subscribed to this service.
The BBC has reached out to Trump Media and Technology Group and the White House for additional comments.
Despite an 89% increase in revenue to $1.7 million compared to the previous year, the company's overall loss was driven by a decline in cryptocurrency values. Trump Media concluded the second quarter with $2 billion in total assets, including approximately $1.9 billion in financial assets such as cash, short-term investments, and digital currencies.
The group has yet to achieve profitability, even as it diversifies into areas like cryptocurrency holdings and clean-energy investments.
In July, Trump Media unveiled its plan to offer Wall Street traders quicker access to Trump's Truth Social posts. This initiative is widely perceived as a means to provide subscribers with a competitive advantage in trading stocks and other actively traded assets.
This move has sparked numerous legal and ethical debates, particularly concerning the propriety of a company, in which the president's family retains majority ownership, profiting from his public statements.
Trump Media stated in its Monday earnings report that the new service is "expected to provide the company with a new revenue stream."
McGurn expressed optimism, saying, "I'm encouraged by this momentum, and shareholders should expect more frequent communication from us on our progress each quarter as we enter this next chapter."
The sale of rapid access to market-moving social posts by Trump Media has drawn controversy.
During his first year back in office, Trump reportedly earned over $1 billion from cryptocurrency.