Forbes: Crypto President Trump - One of the Largest BTC Investors in the United States

By Dan Alexander, Source: Forbes, Translated by Shaw Jinse Finance. Looking at Donald Trump's finances, it's easy to overlook one of his most significant assets: Bitcoin. This cryptocurrency doesn't appear in Trump's government financial disclosures. It's also absent from the list of assets on the Trump Organization's website. Nor does it appear in other asset reports. Yet, there's no doubt that Trump holds a significant amount of Bitcoin, valued at an estimated $870 million, making him one of the world's largest Bitcoin investors. The reason Trump's investments are so secretive is that he holds them indirectly through his stake in Trump Media & Technology Group, the company that runs Truth Social (which does appear on his balance sheet). Despite generating less than $4 million in annual revenue, Trump Media Group was valued in the billions when it went public on the Nasdaq and earlier this year turned to cryptocurrency. In May, the company raised $2.3 billion through a combination of debt and the sale of its overvalued stock, then purchased $2 billion in Bitcoin in July. The stock sales diluted Trump's stake in the company from 52% to 41%. Since Trump Media Group's big bet, the price of Bitcoin has risen by about 6%. This means Trump owns 41% of his estimated $2.1 billion in Bitcoin reserves, enough to bring his personal stake to approximately $870 million. It appears that only a handful of billionaires own more Bitcoin than Trump. If they hadn't sold any assets in recent years, the Winklevoss twins' fortune would likely exceed $8 billion. Michael Saylor, who pioneered the Bitcoin reserve strategy, owns approximately $5 billion through his 7% stake in Strategy, Inc., in addition to approximately $2.2 billion in private equity. Tim Draper acquired Bitcoins confiscated by the US government during a crackdown on the illegal Silk Road marketplace at an auction in 2014; these Bitcoins are now worth $3.6 billion. Investor Matthew Roszak likely holds over $1 billion. Next in line is Trump, who showed little interest in Bitcoin during his first term. In 2019, Trump tweeted: "I am not a fan of Bitcoin and other Cryptocurrencies. They are not money, their value fluctuates wildly, and they have no basis in reality. Unregulated crypto assets can facilitate illegal behavior, including the drug trade and other illicit activity." Trump's transformation from cryptocurrency skeptic to Bitcoin bull reflects his business strategy. An opportunist with a knack for marketing, he began dabbling in cryptocurrencies in the years following his departure from the White House. Initially, Trump made millions selling NFT trading cards, including ones featuring himself as a superhero, for easy money. With the 2024 election approaching, he and his three sons launched a cryptocurrency project called World Liberty Financial. The project barely made any progress until Trump won the election. At that point, the cryptocurrency community, highly sensitive to government regulation, flocked to buy World Liberty tokens, ultimately increasing Trump's net worth by over $1 billion, according to Forbes estimates. In Washington before his inauguration, the president-elect launched a meme called TRUMP, adding nearly $1 billion to his fortune. Trump's re-election boosted asset values ​​across the industry. From Election Day last November to May of this year, Bitcoin's price soared 60%. Trump Media announced plans to begin accumulating Bitcoin. The company, capitalizing on Bitcoin's skyrocketing value, sold $1 billion in convertible bonds and $1.4 billion in stock. Trump's bond purchase, worth approximately $400 million, is currently the largest loan in his portfolio, exceeding any of his real estate mortgages. The White House dismissed the ethical concerns raised by this development. Press Secretary Karoline Leavitt stated, "President Trump and his family have never been involved in, and will never be involved in, any conflicts of interest." But she then contradicted herself by pointing out some obvious conflicts of interest. "Through executive orders, support for legislation like the GENIUS Act, and other common-sense policies, this administration is delivering on the President's promise to make America the capital of cryptocurrency." Investors who bought the stocks and bonds that funded Trump Media's Bitcoin reserves were clearly hoping for a "meme stock"-like surge, and that seemed possible. After all, Trump Media's stock price soared solely on the strength of a money-losing social media app, so perhaps it would soar again if it were tied to one of the world's hottest assets? Furthermore, the bonds' structure provided investors with some safety net, guaranteeing a 4% return after a year and a half if the stock price didn't rise. But manias eventually fade. Although Trump Media now has a stronger balance sheet, holding billions of dollars in Bitcoin and $1 billion in debt, its market capitalization is $1.2 billion less than it was before the company pivoted to Bitcoin. Putting aside the impact of Bitcoin, investors now believe that Trump Media's original media businesses are worth only 60% of what they had expected in May. This isn’t to say Trump Media is doomed, especially with only three years left in Trump’s second term. If Bitcoin prices continue to climb, perhaps with the help of White House allies, President Trump’s most loyal followers might start bidding again, potentially adding hundreds of millions or even billions of dollars to Trump’s fortune.