Truth API brings Trump Media its first million: a new era of monetization or an ethical minefield?
Trump Media has officially confirmed that its early access service for Truth Social posts has already generated over $1 million in revenue. This refers to the Truth API subscription, which allows select companies to receive posts from Donald Trump and other top accounts ahead of the market. This is the first significant financial success for the media structure, which until now has been balancing on the edge of losses.
As I have found out, the mechanism is simple: high-frequency traders pay from $60,000 to $100,000 per month for exclusive access to content that can move markets. More than ten such companies have already subscribed, which has ensured a total revenue of $1 million. The service was launched in early August, and according to interim CEO Kevin McGern, the project is only at an "early stage" of development.
How Truth API works
The essence of the offering is speed. In a world where information about the president's decisions can crash or send quotes soaring within seconds, access to Trump's posts a few minutes earlier than the general public is literally a "money-printing machine." McGern confirmed that the company is already in active negotiations with AI companies, and in the future, a separate, cheaper tariff for private traders will appear.
However, such monetization raises serious questions among lawmakers. Congressman Jamie Raskin has already sent a letter to McGern demanding the full list of subscribers be disclosed. Democrats are insisting on an official investigation by the SEC, arguing that selling access to information related to the U.S. president is a potential time bomb for market integrity.
Trump's business is unprofitable
Despite this success, Trump Media's core business remains deeply unprofitable. In the second quarter, the net loss amounted to $238 million — more than 10 times higher than last year's figure. Revenue grew by 89% to $1.7 million, but the bulk of the losses came from the revaluation of bitcoin and stocks on the balance sheet. Analyst Markus Thielen from 10x Research gave a harsh assessment: in his words, Trump Media operates more like a crypto fund than a media company.
What's next
The company recently abandoned the joint launch of 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 its closing is dragging on.
Over the past five days, shares have fallen by 9% after a recent rise. Investors are now closely watching whether Truth API can become a stable source of income, as McGern promises, or whether it is just a temporary measure.
My analysis: The situation resembles playing with fire. On the one hand, Truth API is a brilliant move to monetize a unique informational advantage. On the other hand, selling access to market-sensitive data from the president could trigger a regulatory storm that would wipe out all the benefits. In the long term, this creates a colossal reputational and legal risk that the market, it seems, has not yet fully priced in.