Trump Media has signed up more than 10 customers for its new Truth API service. Truth API launched at the start of August. The service gives Wall Street traders faster access to market-moving posts made by influential accounts on Trump’s Truth Social platform.
It is designed to give some traders an early look at posts from the most influential Truth Social accounts before the information spreads more widely.
Market Context
Trump Media interim CEO Kevin McGurn said customers are paying between $60,000 and $100,000 a month for Truth API during the company’s earnings call, according to BBC News. The company lost $238 million between April and June, according to its earnings report. The loss was more than 10 times bigger than a year earlier. Trump Media reported $1.7 million in revenue for the quarter. The company said its revenue was up 89% compared with the same period last year.
The new business comes as Trump Media reported a huge quarterly loss.
Trump Media said its loss for the same period last year was much smaller. The company has expanded into businesses outside traditional media but now says it wants to put more focus back on its social media operations. Revenue increased sharply from a year earlier, according to BBC News. Thielen said the company is also moving into areas such as social media, but these newer businesses have not yet produced significant revenue.
Most of the early customers are high-frequency trading firms. These firms use technology to make very fast trades based on market information. Trump Media has still not made a profit. Revenue was much smaller than the company’s loss. Trump Media is now trying to diversify beyond crypto. The company recently dropped another crypto-related plan.
Earlier in August, Trump Media cancelled a planned project with Crypto.com that would have added prediction-market features to Truth Social.
Truth API could bring new revenue
Trump Media says Truth API can become an important new source of revenue. McGurn said Trump Media expects the service to become a “meaningful” and “durable” source of revenue alongside its wider media business, according to BBC News. McGurn said the company is also exploring opportunities with technology companies, news organisations and betting markets.
The company believes Truth API could become a long-term business. Trump Media is looking beyond Wall Street for customers. Despite the revenue growth, cryptocurrency losses pushed the company deep into the red. Trump Media’s overall financial performance was hurt by a fall in the value of its cryptocurrency holdings. Trump Media has been expanding heavily into cryptocurrency. The company has moved beyond social media into crypto holdings and other digital-asset businesses.
In its earnings statement on Monday, the company said the service is expected to create a new revenue stream.
