Truth Social reveals a powerful trump card: early access to Trump's posts is already bringing the media empire $1 million
Donald Trump's media conglomerate has found an unexpectedly lucrative vein by monetizing its informational advantage. The Truth API service, launched in early August, has already surpassed the $1 million revenue mark, providing select companies with early access to the U.S. president's posts. This is the first significant financial success for Truth Social, which until now has remained a deeply unprofitable venture.
The monetization model is simple and cynical in its efficiency: more than a dozen firms specializing in high-frequency trading pay between $60,000 and $100,000 monthly for a millisecond advantage. The idea is that Trump's posts, capable of moving markets, should be available to traders before the general public. Interim CEO Kevin McGern confirmed this figure during the first quarterly report, noting that the project is only at an "early stage" of development.
Political storm and ethical questions
Such a scheme immediately drew the attention of lawmakers. Congressman Jamie Raskin sent a letter to McGern demanding the full list of subscribers be disclosed. Democrats are insisting on an official investigation by the SEC, seeing signs of insider trading in the sale of access to market information related to the president. The question is indeed slippery: where does journalism end and insider information trading begin, especially when it comes to the head of state?
Financial reality: losses and prospects
Despite the new revenue source, Trump Media's fundamental metrics remain dismal. The net loss for the second quarter amounted to $238 million, more than ten times higher than last year's figures. Revenue grew 89% to $1.7 million, but that is a drop in the ocean against operating expenses. Analyst Marcus Thielen from 10x Research gave a devastating assessment, comparing the company to a "crypto fund" rather than a media enterprise.
The situation is compounded by the abandonment of a joint launch of a prediction markets platform with Crypto.com — a step that fits the broader trend of winding down crypto initiatives under McGern. Plans for a merger with energy company TAE Technologies are also stalling, although the deal was supposed to close several months ago. The company's shares have lost 9% over the past five days following a recent rally.
My take: Truth API is a brilliant but dangerous experiment. It turns the president's personal statements into a commodity traded on a millisecond basis, which will inevitably attract regulators' attention. The question is not whether the company can make money from this, but whether it will be allowed to. Investors should remember: high volatility and political risk are two sides of the same coin, and the current business model resembles playing with fire, where the stakes are reputation and regulatory fate.