Trump Media’s Quarterly Loss Widens to $238 Million
Synopsis
Trump Media’s second-quarter loss widened to $238.1 million from $20 million a year earlier, while revenue rose to $1.7 million and Truth API signed more than 10 customer agreements.
Key Highlights
- Trump Media’s second-quarter net loss widened to $238.1 million from about $20 million a year earlier despite soaring subscription revenue.
- The larger loss was primarily driven by unrealised losses on its crypto assets.
- Revenue rose to $1.7 million from $0.9 million a year earlier
- Since its launch on August 1, Truth API has entered into over 10 customer contracts.
The Trump Media & Technology Group, at least some of which is controlled by U.S. President Donald Trump and its other social media platform, Truth Social, said it posted a wider second-quarter loss due primarily to unrealised losses related to its cryptocurrency assets.
The company recorded a net loss of $238.1 million compared with around $20 million in the same period last year.
The digitally-native assets, including cryptocurrencies themselves, faced a slew of pressure during the April-to-June quarter as investors fled from risk-sensitive assets in anticipation of U.S. interest rate uncertainty, geopolitical tensions and persistent outflows from crypto investment products.
Truth API Brings New Revenue
Trump Media is exploring additional revenue streams through its Truth API, a licensed data pipeline providing banks and trading firms the ability to see posts from prominent Truth Social accounts including Donald Trump.
The company has previously talked tenable with a price point as high as $100,000 a month for the product. On Monday, it announced that it had signed more than 10 customer agreements for the feed, which debuted on August 1 and is still adding partners.
The Truth API was able to generate income already, according to interim CEO Kevin McGurn. For the June quarter, Trump Media had revenue of $1.7 million compared with $0.9 million a year earlier.
McGurn said the firm was also continuing to make progress on its engulfed merger with fusion energy developer TAE Technologies, an investment closely associated with AI data centres’ broader anticipated boost in power demand.
Source: Reuters
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