The loss is more than 10 times the amount lost during the same period last year, with the per-share loss increasing to 86 cents from 8 cents.
Business Pivot and New Services
Chief Executive Kevin McGurn announced that the company will largely abandon a yearlong effort to expand into industries such as crypto and online betting to refocus on its social media mission. McGurn stated that the company made a disciplined choice to pivot
to prioritize its most important initiatives.
As part of this refocus, the company is launching Truth API, a service providing Wall Street trading firms with early access to top posters on Truth Social, including President Donald Trump. The service costs between $60,000 and $100,000 per month. McGurn noted that 10 customers, primarily high-frequency trading firms, have already signed up, which could generate between $7 million and $12 million annually.
While crypto and betting plans are being dropped, Trump Media will continue its venture into nuclear fusion. The company intends to complete a previously announced merger with energy firm TAE Technologies by the end of the year, which McGurn described as the single most important driver of long-term value
for the company.
Financial Performance and Assets
The company’s second-quarter revenue was $1.7 million, more than double the revenue from a year prior. Much of the quarter’s losses were attributed to unrealized paper losses from the declining value of the company’s holdings in bitcoin and a crypto token called Cronos. When excluding taxes, interest, and those paper losses, operating losses rose to $164 million from $44 million a year earlier.
At the close of the quarter, Trump Media held more than $400 million in cash and short-term investments, along with $1.2 billion in bitcoin and bitcoin-related assets. The company also carries $1 billion in debt from special convertible notes. While these notes do not mature until 2028, lenders have the option to demand a cash-out in November.
Following the report, Trump Media stock fell 8% during regular trading and declined slightly in after-hours trading.