Trump Media and Technology Group, the parent company of Truth Social, reported a $20 million loss for the second quarter and announced plans for a new utility token.
Financial Results of Trump Media
The second quarter was unprofitable for Trump Media, which reported a loss of $20 million. The primary focus is on legal expenses related to the prolonged process of merging with SPAC. About $15 million of this amount was spent on litigation with the SPAC sponsor and two co-founders of Truth Social, against whom Trump Media filed a lawsuit for improper conduct that delayed the deal for 29 months.
Utility Token Plans
In its quarterly report, the company also provided new details about its planned rewards program. Subscribers to the Patriot Package, currently in beta, will collect "gems" that will eventually connect to a utility token usable across the company's platforms, including the streaming service Truth+. The token will initially cover subscription costs for Truth+, with broader uses expected later. Trump Media did not confirm whether this token will be blockchain-based.
Future Investments in Cryptocurrency
The company continues investing in cryptocurrency and is actively working on launching digital asset ETFs. In its report, Trump Media stated that about two-thirds of its $3 billion in liquid assets are now tied to Bitcoin. Additionally, $300 million has been earmarked for options linked to Bitcoin stocks, with potential for converting those positions into spot Bitcoin depending on market conditions. Plans for cryptocurrency ETFs are anticipated in partnership with Crypto.com under the "Made in America" initiative.
Trump Media, while navigating the cryptocurrency landscape, continues to showcase ambitious plans despite current financial struggles. The new utility token and active investments in Bitcoin could play a key role in the company's future.
