By Dan Alexander
Looking at Donald Trump’s finances, it is easy to overlook one of his most significant assets: bitcoin. The cryptocurrency appears nowhere on the financial disclosure he submits to the government. It is not included among the assets listed on the Trump Organization website. And it does not appear in other reports on his assets. But make no mistake, Trump holds a significant position in the digital currency that reaches, according to estimates—$870 million, enough to make him one of the largest bitcoin investors on the planet.
The reason Trump’s investment is so hidden: He owns it indirectly, through his stake in the company that manages Truth Social, Trump Media and Technology Group (which does appear in his financial data). Trump Media attracted a multi-billion dollar valuation on Nasdaq, despite having less than $4 million in annual revenue, before turning to cryptocurrencies earlier this year. In May, it raised $2.3 billion by issuing new debt and selling its overpriced shares. Then, in July, it "snapped up" $2 billion in bitcoin. The stock sales reduced Trump's stake in the company from 52% to 41%. The price of bitcoin has risen about 6% since Trump Media’s big bet. This leaves the president with 41% of an estimated $2.1 billion reserve, enough to make his personal holding worth approximately $870 million.
There are only a few other billionaires who appear to hold more. The Winklevoss twins potentially hold over $8 billion if they haven't sold bitcoin in recent years. Michael Saylor, who pioneered the bitcoin management strategy that Trump Media is now copying, has about $5 billion through a 7% stake in his company, Strategy – as well as about $2.2 billion separately. Tim Draper won an auction in 2014 for coins the U.S. government had seized during the collapse of Silk Road, an illegal marketplace, which are today worth $3.6 billion. Investor Matthew Roszak may hold more than $1 billion. Right behind them: Donald Trump, who in his first term was not very fond of bitcoin.
"I am not a fan of Bitcoin and other Cryptocurrencies, which are not money and whose value is highly volatile and based on thin air," the president wrote on Twitter in 2019. "Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity," he added.
Trump’s transformation from a crypto skeptic to a bitcoin bull reflects his approach to business. As an opportunist with a marketing mindset, he began dealing with cryptocurrencies during his years out of the White House. Initially, Trump sold NFT trading cards, including those depicting him as a superhero, easily earning a few million dollars.
Subsequently, as the 2024 election approached, he launched a crypto project with his three sons, World Liberty Financial. The project did not progress significantly until he won the election. It was then that the cryptocurrency community, particularly vulnerable to government regulation, turned massively to World Liberty coins, ultimately adding more than $1 billion to Trump's net worth, according to Forbes estimates. With Washington in a frenzy before the inauguration, the President-elect also launched a memecoin, boosting his fortune by nearly an additional billion dollars.
The dawn of a second Trump presidency increased asset values across the sector. The price of bitcoin rose by 60% from Election Day in November to May of this year. Trump Media announced its plan to start storing bitcoin. It relied on its extremely high stock price to raise money, selling $1 billion in convertible bonds and $1.4 billion in stock. Trump’s share of the debt—equal to about $400 million—now represents the largest loan in his portfolio, larger than any of the mortgages on his properties.
The White House is not concerned by the ethical issues this creates. "Neither the president nor his family have ever been, nor will they ever be, involved in conflicts of interest," says Press Secretary Karoline Leavitt, undermining her own statement while clearly highlighting conflicts of interest. "Through executive actions, support for legislation like the GENIUS Act, and other common-sense policies, the administration is fulfilling the president's promise to make the United States the cryptocurrency capital of the world."
Investors who bought the shares and bonds that financed Trump Media’s bitcoin bet were clearly hoping for a meme stock explosion, which seemed reasonable. After all, Trump Media’s stock had soared, boosted by a loss-making social media application, so perhaps it would soar again when connected to one of the world's most energetic assets? Adding a layer of security, the bonds are structured to allow investors to exit with a 4% return after eighteen months if the stock rally ultimately fails to materialize.
But manias always tend to fade in the end. Despite the stronger balance sheet, which today includes a few billion dollars in bitcoin and $1 billion in debt, Trump Media's market capitalization is now $1.2 billion less than it was before the company turned to bitcoin. Leaving aside the bitcoin play, investors' behavior suggests that the original business is worth only 60% of what they thought it was worth last May.
This does not mean Trump Media is doomed, especially with three more years remaining in Trump’s second term. If bitcoin prices continue to rise, perhaps with the help of the White House ally, the president's most loyal followers may start buying shares again, potentially adding hundreds of millions or even billions to Trump's wealth.
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