Trump Media & Technology, the company behind the Truth Social platform, reported a $238 million loss in the second quarter. The company will now refocus on its social media mission, abandoning efforts to expand into unrelated businesses such as online betting and crypto.
New Strategy
The new chief executive, Kevin McGurn, announced the shift in strategy during a conference call after the earnings release. McGurn stated that the company will invest more time and resources in its most important initiatives, including the Truth API service, which offers early access to Wall Street trading firms.
The Truth API service is charging $60,000 to $100,000 a month, with 10 customers already signed up, mostly high-frequency trading firms. This new revenue source could bring in between $7 million to $12 million a year, roughly two to three times the company’s entire revenue last year.
Financials
Trump Media posted $1.7 billion in revenue in the second quarter, more than double from a year earlier. The company has $1 billion in debt from special convertible notes that doesn’t come due until 2028, but lenders have an option to demand they be cashed out in November.
At the end of the quarter, Trump Media had more than $400 million in cash and short-term investments, as well as $1.2 billion in bitcoin and bitcoin-related assets.
Original reporting: 40/29 / KHBS (NW Arkansas) — read the source article.
