Donald Trump's social media company, Trump Media & Technology Group (TMTG), is reportedly exploring a plan to charge as much as $100,000 per month for early access to the former president's posts that can influence the market. Sources familiar with the discussions told the Financial Times that TMTG has quoted this six-figure monthly subscription fee to prospective buyers.
Investment firms rely on rapid access to market data, which is fed into trading algorithms. Even fractions of a second can significantly impact profit and loss. Trump has a history of making market-moving announcements via his social media posts, covering topics such as geopolitical events and trade tariffs.
The proposed service, dubbed 'Truth API,' has generated backlash on Wall Street, as traders anticipate a new, significant expense. TMTG indicated plans to launch the service next month, with some customers already reportedly signing up.
One hedge fund manager told the Financial Times that the fee is necessary for firms wanting to stay competitive, stating, "People will pay because they have to. If you're behind on that news, you'll get crushed."
TMTG acknowledged that the general public would not perceive a speed advantage, as the difference is only measurable in milliseconds. The company is majority-owned by the Trump family and operates the Truth Social platform.
Kevin McGurn, interim CEO of TMTG, commented on the potential revenue stream: "Markets already move on Truth Social posts. As adoption grows, we expect Truth API to become a meaningful, ongoing source of revenue for the company."
This development comes as TMTG's stock price has fallen more than 70 percent since the former president took office, resulting in billions in lost shareholder wealth. The stock closed at $9.63 on Thursday, a 0.6 percent increase.
Former President Trump's financial disclosures indicated over $1 billion in revenue last year from his companies and offerings. However, these returns, contrasted with significant investor losses in new Trump family cryptocurrency ventures, have intensified scrutiny of his financial dealings.
Kathleen Clark, a law professor at Washington University School of Law, told the Associated Press that conflict of interest laws would typically prevent U.S. government officials from profiting off their positions by selling access to their decisions through public posts. Historically, presidents have placed their assets in blind trusts to avoid such conflicts, a precedent Trump did not follow. His arrangement allows him to be aware of his portfolio's contents, though he maintains neither he nor his family directs the trades.
A CNN analysis previously found that Trump had promoted more than 20 companies on Truth Social shortly after purchasing shares in them. Some of these posts coincided with government actions that could benefit the featured firms. It remains unclear whether the former president was aware of specific trades before posting about the companies or their products.
While Trump has expressed support for legislation prohibiting stock trading among lawmakers, he has opposed efforts to restrict the trading activities of U.S. presidents. The White House has denied that Trump has profited from his presidency.