Trump Media CEO Defends Truth API Service as Customer Numbers Climb
Trump Media’s interim CEO, Kevin McGurn, on Monday defended the company’s decision to sell early access to President Donald Trump’s Truth Social posts, saying more customers have signed up for the service. McGurn told CNBC’s “Squawk Box” that the company is “getting into the mid-teens now, and we’re climbing” regarding the number of agreements for the Truth API service, which costs up to $100,000 per month. That marks an increase from two weeks earlier, when McGurn said during Trump Media’s first quarterly earnings call that “more than 10” customer agreements had been signed since the service went live on August 1.
The service has sparked legal and ethical concerns. The Intercept Media and the Freedom of the Press Association have sued President Trump over the decision. The lawsuit alleges that the service violates the First and Fifth Amendments of the Constitution, arguing that it provides access to Trump’s announcements for “unreasonable sums.” The suit states, “The President stands to gain financially by giving 'market-moving' government information to those who are willing and able to pay his personal company,” and describes the move as “corrupt, and unconstitutional.”
Trump Media first announced plans for the Truth API service in July, pitching it to Wall Street firms and institutional investors seeking faster access to Truth Social content, where Trump regularly makes policy announcements. High-frequency traders use sophisticated computer systems and algorithms to execute transactions at extremely high speeds, meaning that getting access to a potentially consequential statement seconds or even fractions of a second before competitors could influence trading decisions.
The business model has raised questions because Trump’s family remains the majority shareholder of Trump Media. Critics have questioned whether a company financially connected to the president’s family should be able to profit from giving investors accelerated access to his public statements. The company has said the service is “expected to provide the company with a new revenue stream,” and McGurn said executives believe it could eventually become a “meaningful” and “durable” source of revenue.
Trump Media also reported its second-quarter financial results. The company lost $238 million between April and June, though its revenue totaled $1.7 million, an increase of 89% from a year earlier. Trump Media said much of its overall loss was related to declines in cryptocurrencies. The company ended the second quarter with approximately $2 billion in total assets, including about $1.9 billion in financial assets.