The Trump Media & Technology Group, which operates the social media platform Truth Social, has disclosed a significant financial setback, reporting a $238 million loss in the second quarter. This comes as the company redirects its efforts back to its primary focus on social media, following an exploration into cryptocurrency and other ventures.
In this period, the company saw its revenue rise to $1.7 million, more than doubling its earnings from the same quarter last year. Kevin McGurn, the newly appointed CEO, emphasized that the company will prioritize its core social media business, although it will continue to pursue certain projects. Among these is a potential merger with TAE Technologies, a firm specializing in nuclear fusion technology.
In a bid to capitalize on its social media platform, Trump Media has unveiled Truth API, a subscription service aimed at financial firms. This service offers early access to posts from Donald Trump and other notable users of Truth Social. The subscription costs range from $60,000 to $100,000 monthly, and it has already attracted 10 clients, predominantly high-frequency trading companies.
By the close of the quarter, the company maintained a substantial liquidity position, with over $400 million in cash and short-term investments. Additionally, it holds approximately $1.2 billion in bitcoin and similar digital assets. However, the company is also managing about $1 billion in debt through convertible notes, which are set to mature in 2028.