Trump media company announces a massive loss and new turnaround effort
Summary
Trump Media & Technology, the company behind the Truth Social app, reported a $238 million loss in the second quarter of 2024. The company plans to stop expanding into new businesses like crypto and online betting and instead focus on social media, including a new service called Truth API for traders.Key Facts
- Trump Media lost $238 million from April to June 2024, over 10 times more than the loss a year earlier.
- The company’s loss per share increased to 86 cents from 8 cents.
- New CEO Kevin McGurn said they will stop most non-media business efforts, such as crypto and online betting.
- The company will focus on social media, including Truth API, a paid service giving trading firms early access to posts from top users like President Donald Trump.
- Truth API charges $60,000 to $100,000 per month per customer and has about 10 clients so far, mostly high-frequency trading firms.
- Trump Media’s stock price declined after the earnings report.
- The company continues work on a nuclear fusion venture with TAE Technologies, considered a key long-term value.
- Some losses were from the falling value of Trump Media’s cryptocurrency holdings, such as bitcoin and Cronos tokens.
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