Trump Media & Technology, the company behind Truth Social, reported a $238 million (£176 million) loss for the second quarter, more than ten times its loss a year earlier. The company also announced plans to refocus on its social media operations, stepping back from ventures in crypto, online betting, finance, and nuclear energy.
Strategic Pivot
In announcing its second-quarter results, the firm said it would largely abandon many of these new ventures to concentrate on its social media mission, providing a forum for users to share their views. Kevin McGurn, the new chief executive, said: “We made the disciplined choice to pivot in order to invest more time and resources in our most important initiatives. We will say no to things or change course as warranted.”
Truth API and Nuclear Ambitions
Central to the new strategy is the controversial Truth API service, which will charge for high-speed access to Truth Social posts, including those from President Donald Trump. Wall Street traders could use this to gain early access to policy announcements, potentially profiting from market moves. McGurn dismissed criticism that this allows Trump to profit from his presidency, stating: “Providing licensed real-time public data through commercial APIs is a well-established business practice across the technology, financial information and media industries. This is no different.”
However, the nuclear fusion business will continue, with plans to complete a merger with TAE Technologies by the end of 2026. The quarterly loss was largely due to paper losses on crypto holdings; excluding those, the loss was $164 million (£121 million), compared to $44 million (£33 million) a year earlier. Revenues for the quarter reached $1.7 million (£1.3 million), more than double the previous year.
