President Trump's media business recorded a 10-fold increase in losses in the second quarter, dragged down by declines in the mark-to-market valuation of its digital assets.
Trump Media & Technology Group reported a loss of $238.1 million for the quarter-ended June 30, compared with a loss of $20 million in the same quarter a year earlier.
The majority of the shortfall were non-cash losses tied to unrealized losses on digital assets, digital assets pledged and equity securities, the company said Monday. The same issues caused its losses to balloon in the first quarter as well. The company said earlier this month that it is terminating several previously announced deals with Crypto.com following of a nearly year-long slump in digital assets.
Trump Media reported $1.7 million of revenue in the second quarter, up 89% from the same period a year earlier.
Interim Chief Executive Officer Kevin McGurn said the company is making meaningful progress toward a proposed merger with the nuclear-fusion company TAE Technologies, which he described as the most important driver of long-term shareholder value.
McGurn also said the company's social media platform is entering into an expanded content phase, referencing a new service that will allow traders will pay for instant access to the president's Truth Social posts. According to McGurn, the product is already generating revenue with more than 10 customer agreements signed so far.
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