In this photo illustration the logo of the social media platform TruthSocial can be seen next to a finger on a smartphone on January 03, 2025 in Berlin, Germany. (Photo Illustration by Thomas Trutschel/Photothek via Getty Images)
Trump Media & Technology, the company owned by President Donald Trump, posted a $238 million loss over the past three months, prompting the business to pivot to a new focus on users' social media use.
The company, who runs the Truth Social platform, has branched into online betting, crypto and other businesses unrelated to media, leading to a massive loss. CEO Kevin McGurn said the company plans to drop those other matters and put the focus back on social media.
What they're saying:
"We made the disciplined choice to pivot in order to invest more time and resources in our most important initiatives," McGurn said. "We will say no to things or change course as warranted."
RELATED: Trump Media plans paid high-speed access to Truth Social posts
Part of the shift is likely to include paid access to some user content, including that of President Donald Trump. The new service, Truth PSI, was announced with other deals by President Trump and the family company.
The other side:
Critics on the other side of the fence are deeming a presidency for profit. Truth Social will follow a similar path other social media platforms offer, but because Trump is the most popular poster and largest shareholder of the publicly traded company, he stands to have the most benefit from any financial gains of the company.
Dig deeper:
The new service has signed up 10 high-frequency trading firms already, charging $60,000 to $100,000 a month, garnering Trump Media between $7 million to $12 million a year, or roughly two to three times the company’s entire revenue last year.
This year, over the past four months, most of their losses were due to unrealized paper losses from the drop in Trump Media’s holdings of bitcoin and Cronos, another crypto token.
The Source: This story was written with information provided by The Associated Press. This story was reported from Orlando.