Trump Media Abandons Cryptocurrency Expansion Amid Massive Losses

Trump Media & Technology, the company behind Truth Social, posted a massive loss of $238 million in the second quarter. This was more than ten times the loss from a year earlier and represents a significant setback for the company's expansion plans.

The company's new CEO, Kevin McGurn, announced that it will be refocusing its efforts on social media and abandoning several new business lines, including cryptocurrency and online betting.

One of these ventures, Truth API, offers early access to Wall Street trading firms for top posters on the platform. The service has already attracted ten customers, mostly high-frequency trading firms, who are paying between $60,000 and $100,000 per month.

Trump Media hopes to close a previously announced merger with energy company TAE Technologies by the end of the year, which McGurn believes will be a major driver of long-term value for the company. The company has $1 billion in debt from special convertible notes that don't come due until 2028.