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▲ Trump Media (Trump Media, DJT), Truth Social, Bitcoin (BTC)/AI-generated image
Trump Media (DJT)'s Bitcoin (BTC) investment loss is estimated to be approximately $555 million. Demands for an investigation into the newly launched Truth API have also been raised.
According to BeInCrypto on August 2 (local time), on-chain analytics account Lookonchain stated that Trump Media sold an additional 2,628 BTC worth $165.07 million. The cumulative sales volume increased to 7,281 BTC. Trump Media had previously invested $1.37 billion to purchase 11,542 BTC, with an average purchase price of $118,522.
The cumulative sales proceeds totaled $545 million, with an average selling price of $74,855. Lookonchain estimated the total loss, combining realized and unrealized losses, to be approximately $555 million. The remaining 4,260.73 BTC has been pledged as collateral for convertible bonds. The selling restriction remains until the maturity date of May 29, 2028. A digital asset impairment loss of $243.96 million was reflected in the first-quarter net loss of $405.9 million.
On August 1, Trump Media launched the Truth API for institutional clients. This is a data licensing product that provides Truth Social posts before public release. The monthly fee is up to $100,000, or $60,000 for a three-year contract. Annual revenue from one full-price subscription is $1.2 million, which exceeds Trump Media's total first-quarter revenue of $871,200, a 6% increase from the same period last year.
Kevin McGurn, interim CEO of Trump Media, stated, “The market is already reacting to Truth Social posts,” and “Truth API provides the most impactful posts to the market as officially licensed real-time data.” The Truth API transmits posts from 10 highly influential accounts in milliseconds. In July, immediately after then-U.S. President Donald Trump announced that a memorandum of understanding with Iran had fallen through, Bitcoin plummeted within minutes.
On July 28, Democratic Senators Elizabeth Warren and Adam Schiff demanded an investigation from Paul Atkins, Chairman of the U.S. Securities and Exchange Commission (SEC). The two senators argued that it should be determined whether the Truth API violates securities law. Trump's stake in Trump Media was estimated to be about 41%. The senators stated, “This appears to be using the presidency for personal gain,” and “It undermines the trust of ordinary investors and the market.” They also cited a post by Trump on June 10, immediately after the market opened, mentioning Citigroup (C) with its ticker, as grounds for investigation.
[Key Article Summary]
-Trump Media sold an additional 2,628 BTC, increasing the cumulative sales volume to 7,281 BTC.
-Realized and unrealized losses from Bitcoin investment are estimated to be approximately $555 million.
-U.S. senators have asked the SEC to investigate whether the Truth API, with a monthly fee of up to $100,000, violates securities law.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*
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