Trump's Truth Social losses rise to $238 million

Trump's Truth Social losses rise to $238 million

Truth Social, the social media platform owned by Donald Trump, and its parent company Trump Media & Technology Group have suffered significant financial losses. In the three months from April to June this year, the company's losses stood at approximately $238 million, more than 10 times higher than the same period last year.

In response to this situation, the company has decided to change its business strategy. Trump Media now plans to focus its operations primarily on the core Truth Social platform, moving away from unprofitable projects. Additionally, the company has launched a new technology-based service to increase revenue.

Through this service, called 'Truth API', major trading firms will be able to access Trump's social media posts before ordinary users in exchange for payment. While the move has drawn criticism from Democrats, Trump Media has defended it, arguing that such services are not unusual in the information and technology sector.

The company's financial report shows that while revenue from its core business increased, the overall loss was largely driven by a sharp decline in cryptocurrency markets. The drop in the value of Bitcoin and other digital assets significantly increased the scale of the losses.

Despite the massive losses, Trump Media's financial position has not completely collapsed. The company currently holds approximately $400 million in cash, along with crypto assets valued at around $1.2 billion.

Kevin McGarn, who recently took over as the company's CEO, said that from now on, greater resources and time will be invested in important and promising projects. He also indicated that some initiatives may be discontinued or business plans adjusted if necessary.