Trump Media Reports $238 Million Loss, Scales Back Most New Ventures

India, Aug. 11: Trump Media and Technology Group, the owner of Truth Social, reported a $238 million loss for the second quarter and announced plans to scale back several new business initiatives as it refocuses on its core social media operations.

The company’s loss for the three months ended June was more than ten times the loss recorded during the same period last year. Its loss per share also widened significantly to 86 cents from 8 cents a year earlier.

New CEO Kevin McGurn said the company had decided to redirect resources toward projects considered central to its future growth. As part of the strategy, Trump Media will largely abandon efforts to expand into areas including online betting and cryptocurrency.

“We made the disciplined choice to pivot in order to invest more time and resources in our most important initiatives,” McGurn said during an earnings call.

Investors reacted negatively to the results, with Trump Media shares declining 8 per cent during regular trading before edging lower in after-hours trading.

A key part of McGurn’s strategy is Truth API, a service designed to provide financial firms with early access to posts from prominent Truth Social users. The platform is particularly significant because President Donald Trump, its most-followed user, frequently posts about US policies and economic issues that can influence financial markets.

The service has attracted scrutiny from government watchdogs, who have raised concerns about potential opportunities for Trump to benefit financially from his presidency. Democrats have also indicated that they could investigate the service if they regain control of Congress following the midterm elections.

McGurn defended Truth API, saying licensed commercial APIs that provide real-time public information are widely used across the technology, financial information and media sectors.

Customers currently pay between $60,000 and $100,000 a month for the service, according to McGurn. Trump Media has signed 10 customers so far, with most reportedly being high-frequency trading firms. The company plans to broaden its customer base to include data centres, news organisations and developers working on large language models.

Despite scaling back several ventures, Trump Media intends to continue its previously announced nuclear fusion project. McGurn said the company aims to complete its proposed merger with energy company TAE Technologies by the end of the year.

Cryptocurrency-related losses were a major contributor to the quarterly deficit. The company recorded unrealised losses on its holdings of bitcoin and Cronos, adding pressure to its financial results.

Excluding cryptocurrency losses, taxes, interest and other items, Trump Media’s operating loss stood at $164 million, compared with $44 million in the corresponding quarter last year.

The company finished the quarter with more than $400 million in cash and short-term investments. It also held approximately $1.2 billion in bitcoin and related assets.

Trump Media additionally has $1 billion in debt linked to convertible notes due in 2028. However, lenders have the option to demand repayment as early as November, adding another financial consideration as the company reassesses its expansion strategy.