Trump Media Hit Hard by Crypto Plunge... $240 Million Net Loss in Q2
The social media company of U.S. President Donald Trump, Trump Media & Technology Group, posted a net loss of more than 200 million dollars in the second quarter due to declines in the value of its cryptocurrency holdings and other digital assets.
On August 10 (local time), Trump Media announced that its net loss for the second quarter was 238 million dollars. The net loss for the same period last year was 20 million dollars. Revenue came in at 1.7 million dollars, marking an 89 percent increase compared to the same period last year.
Bloomberg reported that these results further deepen Trump Media’s poor financial performance. The company has pursued several new business ventures, including building reserves of cryptocurrency and acquiring experimental clean energy companies, but it has yet to turn a profit.
Meanwhile, last month Trump Media launched the ‘Truth API’ service, which allows subscribers to gain priority access to posts on President Trump's social networking service, Truth Social, compared to general users. The monthly subscription fee ranges from 60,000 to 100,000 dollars. Kevin McGahn, interim CEO of Trump Media, stated that the Truth API has already secured more than 10 clients, with the main customers being high-frequency trading (HFT) firms.
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Trump Media plans to further expand its client base to include individual investors, media outlets, and artificial intelligence (AI) large language model (LLM) developers. During a conference call, interim CEO McGahn commented, "This business can grow into a meaningful and sustainable source of revenue, but it is still only a part of our broader media and technology strategy."
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