Truth API brings Trump Media its first million: monetization of Trump's posts reaches a new level
Donald Trump's media structure has found an unexpectedly profitable way to capitalize on his public activity. The Truth API service, launched in early August and providing paid early access to posts on the Truth Social social network, has already generated over $1 million in revenue. This was confirmed in the company's latest quarterly report.
The mechanics are simple and cynical in their effectiveness: more than ten companies operating in the high-frequency trading sector have subscribed to receive publications earlier than everyone else. Rates range from $60,000 to $100,000 per month. Given that Trump's posts can move markets—from cryptocurrencies to stocks—such a price seems justified for those hunting for a fraction of a second of advantage.
How Truth API works
Interim CEO Kevin McGern, commenting on the report, called the launch of the service an "early stage." However, the numbers speak for themselves: at this subscription price, revenue from ten clients has already exceeded the million-dollar mark. Notably, management is actively negotiating with AI companies, and a separate pricing plan is being prepared for private traders.
It is obvious that the demand for "raw" data from Trump is enormous. But here a legitimate question arises: is this not a monetization of insider information, which by definition should be available to all market participants simultaneously?
Reaction from lawmakers
The political establishment has already responded. Congressman Jamie Raskin sent an official request to McGern demanding the full list of service subscribers be disclosed. Democrats are insisting on an investigation by the U.S. Securities and Exchange Commission (SEC). The essence of the complaints boils down to the fact that selling access to market-relevant information associated with the president creates unequal conditions for trading participants.
Trump's business is unprofitable
Despite the success of the new direction, the company's fundamental indicators leave much to be desired. The net loss in the second quarter amounted to $238 million—more than ten times the figures from the previous year. Revenue, although up 89% year-over-year, reached only a modest $1.7 million. A significant portion of the losses is related to the revaluation of bitcoin and stocks held on the company's balance sheet.
Analyst Markus Thielen from 10x Research gave a harsh assessment of what is happening, noting that Trump Media functions more like a crypto fund than a traditional media company.
What's next
Notably, the company declined to jointly launch a prediction markets platform with Crypto.com. This fits into the overall trend of scaling back crypto initiatives under McGern's leadership. At the same time, the merger deal with energy company TAE Technologies is still in effect, although it is dragging on.
The company's shares have lost 9% over the past five days after a recent rise. Investors are now closely watching whether Truth API can become a stable source of income, as management promises, or whether it is a one-time surge driven by election hype.
My view: monetizing Trump's posts is a step that is brilliant from a business perspective but extremely controversial from an ethical standpoint. If the SEC decides this constitutes the dissemination of insider information, the company faces serious sanctions. However, given the political weight of the owner, the likelihood of harsh punishment remains low. In the short term, this is rather positive for shareholders seeking at least some source of real revenue.