Trump Media's quarterly loss widens to $238 million from $20 million a year earlier


The Nasdaq Market site is seen on the day that shares of Truth Social and Trump Media & Technology Group start trading under the ticker "DJT", in New York City, U.S., March 26, 2024. REUTERS/Shannon Stapleton

Aug 11 (Reuters) - Trump Media & Technology ⁠Group, founded by U.S. President Donald Trump and known for ⁠its Truth Social platform, reported a wider second-quarter loss, largely due ‌to unrealized losses tied to its cryptocurrency assets.

Its second-quarter net loss jumped to $238.1 million from about $20 million a year earlier, the company said in a statement.

Digital assets, including cryptocurrencies, came ​under pressure during the April-to-June quarter as ⁠investors shunned riskier assets amid uncertainty ⁠over U.S. interest rates, geopolitical tensions and persistent outflows from crypto investment ⁠products.

The ‌results come as Trump Media seeks to generate new revenue from Truth API, a licensed data feed that will give banks ⁠and trading firms "the fastest" access to posts from influential ​Truth Social accounts, such ‌as President Donald Trump's, whose posts often move global markets.

Trump Media ⁠has discussed ​charging as much as $100,000 a month for the Truth API product, Reuters and other media outlets have reported.

The company said on Monday it had signed more than ⁠10 customer agreements for the feed that launched ​on August 1, adding that it was continuing to add partners.

"Our new Truth API product is already generating revenue, with more than ten customer agreements ⁠signed to date," the company's interim CEO, Kevin McGurn, said in a statement.

The company posted $1.7 million in revenue in the quarter ended June, compared with $0.9 million in the same period last year.

McGurn added that the company was ​making progress toward its proposed merger with fusion ⁠energy developer TAE Technologies, an ambitious bet on the power boom spurred by ​artificial intelligence data centers that adds to the ‌Trump family's growing roster of diverse ventures ​from cryptocurrency to real estate holdings and mobile services.

(Reporting by Anusha Shah and Shubham Kalia in Bengaluru; Editing by Saumyadeb Chakrabarty)

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