- Trump Media reported a loss of $238m (£176m) between April and June as it branched into ventures unrelated to media, including cryptocurrencies.
- The quarterly loss is more than 10 times the amount reported during the same period a year earlier, according to the Trump Media and Technology Group, which owns the President's Truth Social platform.
- The company posted $1.7m in revenue, which it said is up 89% from the same period a year before, but suffered overall loss due to the drop in cryptocurrencies.
- In July, Trump Media announced a plan to give Wall Street traders faster access to posts on Truth Social, where Trump frequently makes announcements. The new service is "expected to provide the company with a new revenue stream," Trump Media said in its earnings statement on Monday.
- Interim CEO Kevin McGurn said that more than 10 customers have signed up for the new service.
- The company closed the second quarter with total assets of $2bn and financial assets of about $1.9bn, which includes cash, short-term investments and digital currencies.
- Trump Media is more of a crypto holdings firm "wrapped around" a media company, and the bulk of its losses have come from that strategy, Markus Thielen, an analyst from 10x Research, told the BBC.
- The company is diversifying beyond its crypto business into areas such as social media, though those ventures have yet to generate significant revenue, Thielen said.
Trump Media and Technology Group reported a staggering $238 million loss for the second quarter, a figure more than 10 times last year's loss, as it ventured into cryptocurrency investments. Despite this, the company saw its revenue rise by 89% to $1.7 million compared to the same period last year.2
The losses stemmed primarily from the company's strategy of diversifying into crypto, which has not yielded significant returns. Markus Thielen, an analyst from 10x Research, noted that Trump Media is essentially a crypto holdings firm wrapped around a media company, indicating that the bulk of its losses are linked to this approach.8
In response to the financial downturn, the firm plans to refocus on its core social media mission, which includes a new service aimed at providing Wall Street traders with faster access to posts on Truth Social. This service is expected to create a new revenue stream, according to the company's earnings statement.45
As of the end of the second quarter, Trump Media reported total assets of $2 billion and financial assets of about $1.9 billion, which includes cash, short-term investments, and digital currencies. The interim CEO, Kevin McGurn, mentioned that over 10 customers have already signed up for the new service, indicating a potential shift in focus back to its social media roots.6
“The loss is more than 10 times the year-ago figure, with the company holding $2bn in total assets and $1.9bn in financial assets. Interim CEO Kevin McGurn said over 10 customers have signed up for a new service giving Wall Street traders faster access to Truth Social posts.”
BBC
