Due to crypto: Losses at Donald Trump's media company widened in the second quarter
President Donald Trump's media company, Trump Media & Technology Group, reported a quarterly loss of 238.1 million dollars. The decline was primarily driven by losses in digital asset trading.
President Donald Trump's media company (Trump Media & Technology Group) deepened its quarterly loss and closed the second quarter with revenue of 1.7 million dollars — a growth of 89% compared to the same quarter last year. At the same time, the operator of the social network Truth Social recorded a loss of 238.1 million dollars in the quarter, compared to a loss of 20 million dollars in the same quarter.
The negative bottom line was attributed mainly to the results of its trading activity, primarily in crypto:
"Included a loss of 190 million dollars in digital assets and stock investments."
Simultaneously, the company recorded in its reports operating expenses of over 175 million dollars, an increase of 75% compared to operating expenses in the same quarter, which it attributed "mainly to the volatility in the prices of digital assets." Earlier yesterday, The New York Times published that user traffic on the social network Truth Social dropped in July by 36% compared to July last year. This is according to data from Similarweb, which provides user traffic data.
The media group's stock has lost 29% since the beginning of the year and has fallen by 80% since its listing for trading via a SPAC IPO in March 2024. It is currently traded at a valuation of 2.6 billion dollars — the value of the President's shares stands, according to yesterday's closing price, at 1.1 billion dollars.
The company further reported that more than ten clients have signed up to receive early updates on the President's posts in exchange for a payment of between 60 thousand dollars and 100 thousand dollars per month, a new service that has drawn criticism on the grounds that Donald Trump is profiting from his role in the White House. Interim CEO Kevin McGran stated in a call with analysts that the clients are mostly financial companies, and that the company is in "active" talks with other potential clients, including AI companies. "We are only in the early stages," he said.
At the same time, the media company continues to promote a planned merger with the nuclear fusion company, TAE Technologies, valued at 6 billion dollars. Originally, the deal was supposed to close in the second quarter of the year, but the relevant documents have not yet been submitted. McGran said that the current goal is to complete the deal by the end of the year.
