Trump Media, the parent company behind the Truth Social platform, has announced plans to launch a utility token and digital wallet.
Utility Token Launch
According to a recent SEC filing, the utility token will be part of a broader rewards system linked to the company's streaming service. Users will be able to use the tokens to pay for subscriptions in its initial stages, with plans to expand its use across the Truth ecosystem over time.
Trump Media's Financial Results
While the company announces the token launch, it has also disclosed its latest financials, which show a net loss of $20 million for the year's second quarter. The loss was primarily due to $20.5 million in non-cash expenses, including stock-based compensation, depreciation, and legal fees.
Cryptocurrency Strategy
Despite the losses, Trump Media logged its first positive operating cash flow of $2.3 million, mainly fueled by its recently adopted crypto strategy. Last month, the company raised $2.4 billion through a private offering, utilizing most of those funds to acquire approximately $2 billion in Bitcoin and other related assets.
Trump Media continues to actively develop its cryptocurrency strategy despite facing financial challenges from current losses, indicating its desire to remain competitive in the rapidly evolving market.
