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Trump media company announces a massive loss and new turnaround effort
apnews.com • • business
Key Points:
- Trump Media & Technology, the company behind Truth Social, reported a $238 million loss in Q2, more than 10 times the loss from a year earlier, due to unsuccessful ventures outside media such as crypto.
- New CEO Kevin McGurn announced a strategic pivot to focus solely on social media, abandoning expansions into online betting and crypto, while continuing a nuclear fusion project tied to TAE Technologies.
- The company launched Truth API, a paid service offering early access to top social media posters' data for Wall Street trading firms, charging $60,000 to $100,000 monthly and already signing 10 clients.
- Despite the large loss, Q2 revenue doubled to $1.7 billion year-over-year, and the company holds over $400 million in cash plus $1.2 billion in bitcoin-related assets, though it faces potential debt repayment challenges in November.
- The Truth API service has drawn criticism over ethical concerns of profiting from presidential influence, but McGurn defended it as a common commercial practice in tech and financial industries.
