More than 10 customers have signed up for a controversial service launched by Trump Media and Technology Group that gives financial firms faster access to influential posts published on Truth Social.
The service, called Truth API, was introduced at the beginning of August and provides Wall Street traders with early access to posts from some of the social media platform’s most influential accounts. Many of its first customers are high-frequency trading firms paying between $60,000 and $100,000 a month, interim chief executive Kevin McGurn said during the company’s earnings call.
The service has raised concerns because US President Donald Trump frequently uses Truth Social to make announcements and comment on markets, companies and economic issues. Trump’s family remains the majority shareholder of Trump Media, creating questions over whether the company could financially benefit from faster access to statements made by the president.
Trump Media said in its latest earnings statement that Truth API is expected to create a new source of revenue. McGurn said the company believes the service could become a significant and lasting contributor to its business.
The announcement came as Trump Media reported a net loss of $238 million for the second quarter, covering April through June. The loss was more than 10 times the deficit recorded during the same period a year earlier.
The company generated $1.7 million in revenue during the quarter, an increase of 89% from a year earlier. However, losses linked to the decline in cryptocurrency values weighed heavily on its overall results.
Trump Media ended June with about $2 billion in total assets, including roughly $1.9 billion in financial assets such as cash, short-term investments and digital currencies.
The company has expanded beyond its original social media business into cryptocurrency and clean-energy investments. It has also explored possible partnerships involving technology companies, news organisations and betting markets.
Analyst Markus Thielen of 10x Research described the company as being heavily focused on cryptocurrency, with its media operation surrounding that business. He said the company was now attempting to diversify, although its newer ventures have yet to produce substantial income.
Truth API has also attracted scrutiny over whether paying customers could gain a trading advantage by receiving market-sensitive posts before the wider public. The issue is particularly sensitive because of Trump’s political position and his frequent use of Truth Social.
Trump Media has said the service fits within its broader strategy to expand revenue from Truth Social. The company recently abandoned plans for a separate partnership with Crypto.com to add prediction-market features to the platform.
