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Trump Media posts $238m loss as crypto holdings drag results
The company said it will narrow focus to its social media business, including a paid faster access service for Truth Social posts, after a quarterly drop tied to cryptocurrencies.
Trump Media and Technology Group, the owner of Truth Social, reported a $238 million loss between April and June, with the quarterly loss more than 10 times the amount it logged in the same period a year earlier, the BBC said. The deficit was driven by results tied to its cryptocurrency ventures, even as revenue rose.
The company posted $1.7 million in revenue, up 89% year over year, and it said it is refocusing on social media. That includes its controversial faster access service offering more rapid delivery of market-moving posts from top Truth Social users.
Interim CEO Kevin McGurn said more than 10 customers have signed up for the service, which was described as a way to help subscribers get an edge on trading heavily traded assets. Trump Media said the service is expected to create a new revenue stream.
Trump Media reported closing the second quarter with total assets of $2 billion and financial assets of about $1.9 billion, including cash, short-term investments, and digital currencies. BBC cited an analyst view that the company resembles a crypto holdings firm wrapped around media, with much of the loss coming from that strategy.