Trump Media reports $238 million loss and announces strategic pivot

Trump Media & Technology Group, the parent company of Truth Social, reported a $238 million loss for the second quarter ending in June. This represents a significant increase from the loss reported a year prior. The company attributed much of the deficit to unrealized paper losses from declining values in its holdings of bitcoin and the cryptocurrency token Cronos.

In response to the losses, new CEO Kevin McGurn announced a strategic pivot to refocus the company on its core social media mission, moving away from recent expansions into online betting and cryptocurrency industries. As part of this turnaround, the company is launching Truth API, a service charging between $60,000 and $100,000 per month that provides Wall Street trading firms early access to top posters on the platform.

A regulatory filing with the Securities and Exchange Commission also disclosed new risks regarding the company’s digital asset management. Trump Media warned that it has deployed some of its bitcoin holdings to third parties to generate income, exposing the assets to lending risks. The filing cited the collapses of firms like FTX and Celsius as cautionary examples, noting that if a third-party counterparty fails, the company could face “limited or no recovery” of its cryptocurrency.