In its fiscal second quarter, Trump Media & Technology Group (TMTG) experienced a net loss exceeding $238 million, a stark increase from the nearly $20 million loss reported in the same quarter last year. The company's revenue was less than $2 million, with $1.7 million generated from advertising services on Truth Social, reflecting an 89% year-over-year increase.
However, TMTG's losses were largely attributed to declines in non-cash assets, particularly over $190 million in losses related to digital assets and equity securities. Operating expenses surged to over $165 million, marking a 275% increase from the previous year, largely due to the volatility in digital asset prices, as noted by CFO Phillip Juhan during the earnings call.
Additionally, TMTG announced the Truth API service, which has secured over 10 customer agreements with high-frequency trading firms, charging between $60,000 and $100,000 monthly.
The company, which went public through a SPAC merger and trades under the ticker DJT, is also shifting focus from its crypto ventures to its media business and a pending merger with TAE, a fusion energy firm, which interim CEO Kevin McGurn identified as crucial for long-term value.
Despite these developments, TMTG's stock has significantly declined, closing down 8% on the day of the earnings report