Trump Media Reports $238 Million Second-Quarter Loss

Trump Media & Technology Group reported a net loss of $238.1 million for the second fiscal quarter, a sharp increase from the $20 million loss during the same period last year. The company generated $1.7 million in revenue, primarily from Truth Social advertising services, which grew 89% year-over-year. The quarterly deficit was driven largely by $190.4 million in non-cash declines in equity securities and digital assets, including $218 million in unrealized bitcoin losses and $27.4 million in unrealized cronos losses.

To diversify revenue, the company launched Truth API on August 1. The service sells high-speed access to high-ranking Truth Social accounts, including those of Donald Trump, for between $60,000 and $100,000 per month. Interim CEO Kevin McGurn announced that more than 10 customers, mostly high-frequency trading firms, have already signed agreements for the service.

Strategically, the company is pulling back from agreements with Crypto.com and prediction market contracts to focus on its media business and a pending merger with fusion energy firm TAE Technologies. Despite holding $2 billion in total assets, the company's stock closed down more than 8% at $9.39 on Monday following the report, erasing two weeks of gains.