Trump's Truth Social company reports $238 million loss as crypto investments lose value

Trump Media & Technology Group, the company behind Truth Social and founded by US President Donald Trump, saw its second-quarter loss rise sharply as losses linked to its cryptocurrency holdings hit its results, according to a report by Reuters.

The company’s net loss rose to $238.1 million in the April-June quarter, from about $20 million a year earlier, according to a company statement.

The wider loss was mainly linked to unrealized losses on its cryptocurrency assets.

Crypto and other digital assets came under pressure during the quarter as investors moved away from riskier investments. Concerns over US interest rates, geopolitical tensions and continued money leaving crypto investment products also weighed on the market.

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The results come as Trump Media looks to build a new source of income through Truth API. The licensed data service gives businesses access to posts from major Truth Social accounts, including Donald Trump’s. It is aimed at banks and trading firms that want quick access to posts from accounts whose statements can sometimes affect global markets.

Trump Media has discussed charging as much as $100,000 a month for the Truth API product, according to Reuters and other media reports.

The company said on Monday that it had signed more than 10 customer agreements for the service, which launched on August 1. It added that it was continuing to bring in more 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.

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Trump Media reported $1.7 million in revenue for the quarter, compared with $0.9 million in the same period last year.

McGurn also said the company was making progress on its proposed merger with fusion energy developer TAE Technologies. The deal is part of Trump Media’s wider plans to expand beyond social media into areas such as cryptocurrency, real estate holdings and mobile services.

The proposed TAE Technologies merger is also a bet on rising demand for electricity from artificial intelligence data centres.