Trump Media Slashes Losses with Pivot Away from Crypto and Betting

Trump Media and Technology Group posted a significant loss in its second-quarter earnings report. The company's net loss widened tenfold to £176.3 million ($238 million) compared to the same period last year.

The quarterly loss led Trump Media's new CEO Kevin McGurn to reassess the firm's strategy, announcing plans to wind down recent ventures into cryptocurrency and online betting. McGurn emphasized that the company would focus on its core social communications platform, Truth Social.

Trump Media had spent heavily in the past year to diversify beyond social networking, but mounting losses prompted a shift in strategy. The company's top-line revenue rose to £1.26 million ($1.7 million) for the quarter, more than double the previous year's intake, but operating costs quickly eclipsed this improvement.

As part of its revised commercial plan, Trump Media is launching a premium data service called Truth API, which provides fast access to public platform posts for institutional Wall Street trading desks. The service charges between £44,400 ($60,000) and £74,000 ($100,000) per month, with ten clients already signed up.

The monetization strategy relies heavily on the platform's most followed user, President Donald Trump, whose announcements can move currency, bond, and equity markets. Critics argue that this arrangement is an improper exploitation of government power to enrich himself.