Donald Trump's Trump Media and Technology Group, which owns the Truth Social platform, reported a quarterly loss of $238 million for the April-June period, primarily due to the company's crypto-related developments and the decline in the value of digital assets, according to BBC.
The company's losses increased more than tenfold compared to the same period last year. Meanwhile, management announced that it would refocus on the development of its core social media business.
Truth Social also offers a paid service that gives subscribers faster access to posts from the platform's most influential users, which can impact markets. According to the company, the service already has over 10 clients, each paying between $60,000 and $100,000 per month.
Recently, Trump Media and Technology Group also announced a program to provide Wall Street traders with expedited access to Truth Social posts, aiming to give them a competitive advantage in trading stocks and other assets.
According to 10x Research analyst Marcus Tileni, the company is now more of a crypto asset holding company around which the media business is built, and the main losses are a result of that strategy.
Earlier, the company had withdrawn from a joint project with Crypto.com that aimed to implement prediction market features on Truth Social. This decision had sparked legal and ethical discussions as the company's major shareholders remain members of the president's family.
Despite the company's revenue increasing by 89% year-over-year to $1.7 million, the overall result remained negative due to the decline in the value of crypto assets.
At the end of the second quarter, Trump Media and Technology Group's total assets amounted to $2 billion, while its financial assets were around $1.9 billion, including cash, short-term investments, and digital currencies.
