Trump Media monetises Truth Social data for high-frequency traders amid quarterly losses
The launch of the Truth API coincides with a $238 million quarterly loss driven by cryptocurrency holdings, as the company seeks new revenue streams amidst ethical scrutiny.
Trump Media has launched the Truth API, a data feed service providing high-frequency trading firms with early access to market-moving posts on Truth Social. More than 10 customers are paying between $60,000 and $100,000 per month for this service. The move comes as the company reported a $238m quarterly loss, largely attributed to cryptocurrency holdings, while seeking new revenue streams amid ethical and legal scrutiny regarding the potential conflict of interest involving the president's family.
Interim chief executive officer Kevin McGurn confirmed the pricing and customer base during an earnings call, stating the service launched in early August. The platform gives Wall Street traders first sight of posts from the social media site's most influential accounts. The earliest customers are mostly in high-frequency trading firms who are being charged between $60,000 and $100,000 a month for the service.
The company posted $1.7m in revenue, which it said was up 89% from the same period a year before, but suffered an overall loss due to the drop in cryptocurrencies. It added that it closed the second quarter with total assets of $2bn and financial assets of about $1.9bn, which includes cash, short-term investments and digital currencies.
The quarterly loss is more than 10 times the amount reported during the same period a year earlier, according to the Trump Media and Technology Group. The group, which is yet to make a profit, says it will refocus on its social media mission. The new service is expected to provide the company with a new revenue stream, Trump Media said in its earnings statement on Monday.
The firm believes the service will develop into a meaningful and durable source of revenue, on top of the company's broader media strategy which includes advertising and digital assets. Truth Media is also exploring opportunities with technology firms, news organisations and betting markets.
Trump Media is more of a crypto holdings firm wrapped around a media company, and the bulk of its losses have come from that strategy, Markus Thielen, an analyst from 10x Research, told the BBC. The company is diversifying beyond its crypto business into areas such as social media, though those ventures have yet to generate significant revenue.
The move has prompted legal and ethical questions, including whether it is right that a company, of which the president's family remains the majority shareholder, stands to potentially profit from his own public statements. Earlier this month, Trump Media scrapped plans for a project with Crypto.com to introduce prediction market features on the Truth Social platform.
