Trump Media reports $238m loss as crypto falls

President Donald Trump's social media company, Trump Media and Technology Group, disclosed a $238 million (£176 million) loss for the April to June quarter as it ventured into unrelated sectors, including cryptocurrencies. The loss represents more than ten times the amount reported during the same period a year ago, as per the group.

The company's interim CEO, Kevin McGurn, announced that more than ten customers have signed up for a service that offers traders faster access to posts from influential users on Truth Social, the platform where Trump frequently posts. Despite posting $1.7 million in revenue, which is an 89% increase from the same period last year, the company suffered overall loss due to the decline in cryptocurrency values.

The company's total assets now stand at $2 billion, with financial assets valued at approximately $1.9 billion, which includes cash, short-term investments, and digital currencies. Analyst Markus Thielen from 10x Research noted that Trump Media is more of a crypto holdings firm "wrapped around" a media company, with most of its losses stemming from its cryptocurrency strategy.

The company is diversifying into other areas such as social media, though these ventures have yet to generate significant revenue. In July, Trump Media unveiled a plan to provide Wall Street traders with faster access to posts on Truth Social, which has raised legal and ethical concerns regarding the potential profit from Trump's public statements.