Trump Media Ditches Unrelated Ventures Amid $238M Q2 Loss

Trump Media & Technology, the company behind Truth Social, reported a massive loss of $238 million in the second quarter, more than 10 times the loss from the same period last year. The per-share loss widened to 86 cents from 8 cents.

The company's new CEO, Kevin McGurn, announced plans to refocus on its core social media mission and abandon efforts to branch into unrelated businesses such as online betting and crypto. This decision was made to invest more time and resources in key initiatives.

Trump Media has been under scrutiny for its expansion into these areas, with critics accusing the company of profiting off the presidency. The new Truth API service, which offers early access to Wall Street trading firms to top posters on the platform, has raised concerns about insider trading and market manipulation.

The company still holds $1.2 billion in bitcoin and bitcoin-related assets, and McGurn noted that other companies sell similar services. Trump Media hopes to close a merger with energy company TAE Technologies by the end of the year, which it believes will drive long-term value for the company.