When examining Donald Trump’s finances, one crucial asset often overlooked is his significant investment in bitcoin. Surprisingly, this cryptocurrency is absent from the financial disclosures that the president files with the government and is not mentioned on the Trump Organization’s website or in other asset reports. However, Trump's holdings in bitcoin are substantial, estimated at around $870 million, positioning him as one of the largest bitcoin investors globally.
The reason for the obscurity surrounding Trump's bitcoin investment lies in the fact that he holds it indirectly through his stake in the Trump Media and Technology Group, which operates the social media platform Truth Social. This company does appear on his balance sheet and has attracted a multibillion-dollar valuation, despite generating less than $4 million in annual revenue. Earlier this year, Trump Media pivoted towards cryptocurrency, significantly altering its financial trajectory.
In May, Trump Media raised $2.3 billion by accumulating debt and selling its overvalued stock. By July, it made a bold move by acquiring $2 billion in bitcoin. This stock sale diluted Trump’s ownership stake in the company from 52% to 41%. Since this major investment, the price of bitcoin has risen approximately 6%, leaving Trump with a personal share valued at roughly $870 million out of an estimated $2.1 billion stockpile.
Trump's bitcoin holdings place him among a select group of billionaires in the crypto space. The Winklevoss twins are estimated to hold over $8 billion in bitcoin if they haven't sold any in recent years. Similarly, Michael Saylor, who pioneered the bitcoin treasury strategy adopted by Trump Media, has approximately $5 billion through his company, along with an additional $2.2 billion in personal holdings. Other notable investors, like Tim Draper and Matthew Roszak, also possess significant bitcoin fortunes, but Trump ranks closely behind them.
Interestingly, Donald Trump has had a transformation in his approach to bitcoin. During his first term, he was openly skeptical about cryptocurrencies, famously stating on Twitter in 2019, “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.” He expressed concerns about the potential for unregulated crypto assets to facilitate illegal activities.
Despite his previous skepticism, Trump began to explore the cryptocurrency market during his time out of the White House. He first ventured into non-fungible tokens (NFTs), launching trading cards featuring himself styled as a superhero, which generated millions in revenue. As the 2024 election approached, he partnered with his sons to create a crypto project, World Liberty Financial, which initially struggled until the political climate shifted.
The anticipation surrounding a second Trump presidency positively influenced asset values in the crypto market. Following the election, the price of bitcoin surged by 60% from November to May. Trump Media's strategy to stockpile bitcoin relied heavily on its inflated trading price, allowing it to raise $1 billion through convertible bonds and another $1.4 billion through stock sales. The debt incurred, approximately $400 million, has become the largest loan in Trump’s portfolio, surpassing any of his real estate mortgages.
Despite the ethical implications of Trump's financial maneuvers, the White House maintains that neither the president nor his family engage in conflicts of interest. Press Secretary Karoline Leavitt claimed, “Through executive actions and supporting legislation like the GENIUS Act, the administration is fulfilling the president’s promise to make the United States the crypto capital of the world.”
Investors who bought shares and bonds to support Trump Media’s bitcoin strategy likely anticipated a surge akin to meme-stock phenomena. While the bonds offer a 4% return after a year and a half if a stock surge doesn’t materialize, the market has shown signs of volatility. Currently, Trump Media's market cap is $1.2 billion less than before the shift to bitcoin, implying that the original media business is now valued at just 60% of its previous worth.
Nonetheless, Trump Media is not necessarily doomed. With three years left in Trump’s term, if bitcoin prices continue to rise—potentially aided by the administration—the president's loyal supporters may once again drive up the company's share prices, significantly enhancing Trump's wealth.
