Trump Media & Technology Group is seeking to bolster its growth with a controversial new offering: selling priority data access to the Truth Social platform for up to $100,000 per month.

CEO Kevin McGurn told investors on Monday that the company has signed contracts with "over 10" clients for the Truth API service. These clients are primarily high-frequency securities trading firms, aiming to gain an edge in investment decisions by seeing President Trump's posts milliseconds before regular users. Contract values typically range from $60,000 to $100,000 monthly. The API includes not only Trump's posts but also content from other top accounts on the platform.

McGurn stated that the company is in "active discussions" with large cloud computing firms, AI enterprises, and news organizations. In the future, the data service is also planned for retail investors. "We are encouraged by the early demand for Truth API and look forward to expanding it into other areas, including retail investors," he said during a conference call with Wall Street analysts discussing the latest earnings.

Growth struggles and new business ventures

Since its founding in 2021, Trump Media has never turned a profit and has struggled to find a stable growth path. Truth Social, as Trump's primary social media platform, saw advertising revenue decline in the second quarter (the company did not disclose specific figures).

To seek breakthroughs, the company has diversified into several new business lines: launching an ETF themed around "patriotic investing," heavily buying cryptocurrencies in an attempt to transform into a crypto asset treasury company, and planning a merger with fusion energy firm TAE Technologies. McGurn said this merger would give the company "an opportunity to play a key role in securing American energy independence."

Earnings released on Monday showed second-quarter revenue up 89% year-over-year to $1.67 million, but net losses expanded tenfold to $238 million, primarily due to a sharp decline in the value of its cryptocurrency holdings. The company's stock (ticker DJT) fell nearly 6% on Tuesday and has dropped about 49% over the past year, while the S&P 500 index rose 21% over the same period.

Millisecond advantage sparks ethical debate

The Truth API was announced in July. Truth Social continues to publicly post Trump's and other top users' content to all users simultaneously, but the API pushes information directly to client computers, potentially allowing high-frequency trading systems to capture content before human users notice it.

This has raised ethical and legal questions. Virginia Democratic Senator Mark Warner has introduced legislation to prohibit social media companies from selling special access to market-sensitive information from government official accounts.

Trump frequently uses Truth Social to announce major policies, including tariff adjustments and diplomatic developments with countries like Iran. Fundstrat research shows that since his return to the White House, Trump's tweets have influenced the S&P 500's five best and worst trading days. For example, on April 9, 2025, he announced a pause on some tariffs, and the S&P 500 surged 9% that day.

McGurn defended the service, saying clients are only "a few milliseconds faster" than the public release and that ethical concerns are "misguided." A company spokesperson stated that critics are either ideologically opposed to free markets or fail to distinguish between public and non-public information.

However, Richard Painter, a professor of corporate law and securities law at the University of Minnesota and former chief ethics lawyer for the George W. Bush administration, noted: "Milliseconds are indeed crucial for high-frequency traders." He warned that while the information is ultimately public, clients who pay for priority access, and the source of the information itself, could face insider trading legal risks if they trade before the market fully digests it.

The president's personal financial interest

Trump owns about 41% of the company, valued at approximately $1 billion by FactSet data. Although he is not involved in day-to-day management, he benefits directly from his stake.

Jessica Tillipman, a George Washington University Law School scholar on government procurement law, pointed out: "This structure gives the president a personal financial interest in the market impact of his own official statements." She added that this is more direct than the issue of members of Congress trading on insider information—the company itself is beneficially owned by the president and is selling access to information created in his official capacity.

Painter argued that broader laws are needed to prevent government officials from profiting from insider information or leaks, drawing a parallel to the 2000 "Fair Disclosure Rule" (Reg FD), which requires publicly traded companies to publicly disclose material information affecting markets.

Currently, revenue from the Truth API remains "relatively limited," but McGurn said the company plans to continue expanding its client base. "We believe it can grow into a meaningful and sustainable revenue source," he added.