Trump Media posts $238 million second-quarter loss as crypto declines

Trump Media & Technology Group on Monday reported a net loss of more than $238 million for its fiscal second quarter on revenue of less than $2 million.

That loss, which dwarfed the almost $20 million it lost in the same period last year, was primarily due to declines in non-cash assets, including more than $190 million in losses from "digital assets, digital assets pledged, and equity securities," the company said in a press release.

The company's $1.7 million in quarterly revenue mostly came through ad services on Truth Social, TMTG's flagship social media product, which is used by President Donald Trump. That revenue marked an 89% increase from the year-ago quarter.

The New York Times reported earlier Monday that Truth Social's traffic — which already paled in comparison to similar platforms, such as Elon Musk's X — fell sharply this summer.

TMTG's quarterly operating expenses of more than $165 million were roughly 275% higher year over year.

"Our operating expenses are largely impacted by the price volatility of digital assets," CFO Phillip Juhan said during the company's first-ever earnings call.

The company also provided new details about Truth API, its controversial new service offering faster access to Trump's Truth Social posts.

TMTG said it has signed "more than 10 customer agreements to date," adding that those clients are "primarily high-frequency trading firms" and paying rates of $60,000 to $100,000 a month, the company confirmed.