Trump Media Abandons Diversification Efforts Amid $238 Million Loss
The Trump Media & Technology company, behind the Truth Social platform, reported a massive loss of $238 million in the second quarter. This was more than 10 times the loss from the same period last year and resulted in a per-share loss of 86 cents, compared to 8 cents previously.
New chief executive Kevin McGurn announced plans to refocus the business on its social media mission and abandon efforts to branch into unrelated industries such as online betting and crypto. The company will instead concentrate on a service called Truth API that offers early access to Wall Street trading firms for top posters on the platform, including President Donald Trump.
McGurn defended the new service, saying it is 'no different' from other companies selling special, fast access to traders. He also noted that 10 customers have already signed up, mostly high-frequency trading firms, which could bring in between $7 million and $12 million a year in revenue.
The company has $1 billion in debt due in 2028, but the lenders have an option to demand cash in November, potentially affecting finances. Trump Media had over $400 million in cash and short-term investments at the end of the quarter and also held $1.2 billion in Bitcoin and related assets.