Trump Media Suffers Massive Loss, Shifts Focus to Social Media and Trading Firms

Trump Media & Technology, the parent company of Truth Social, reported a massive loss in the second quarter. The company lost $238 million from April to June, more than ten times the loss from the same period last year. This was largely due to unrealized paper losses from its holdings of BTC and Cronos.

The new CEO, Kevin McGurn, announced plans to refocus the business on social media and abandon efforts to branch into other industries like online betting and crypto. The company will instead concentrate on a service called Truth API, which provides early access to Wall Street trading firms for top posters on Truth Social. This includes President Donald Trump, who often moves markets with his posts.

McGurn dismissed concerns that this new service would allow Trump to profit from the presidency, saying it's a common practice in the industry. The company has already signed up 10 high-frequency trading firms as customers, which will pay between $60,000 and $100,000 per month. This could generate around $7 million to $12 million in annual revenue for Truth Media.