Trump’s big bet on his $8 billion family fortune

President Donald Trump has made no secret of his love for the crypto industry in his second term, appointing friendly regulators, establishing a US digital asset stockpile, ending prosecutions and pardoning its criminals.

Those moves are set to hit even closer to home as the industry increasingly drives the fate of his family’s personal fortune.

President Donald Trump has made no secret of his love for the crypto industry in his second term.Credit: Bloomberg

His sons Eric Trump and Donald Trump Jr. have hopscotched from one crypto conference to the next — Abu Dhabi in December, Washington in March, Dubai in May — rousing fans and drawing criticism about conflicts of interest along the way. They’re getting top billing at a conference in Las Vegas this week, alongside Vice President JD Vance. A spokesperson for the Trump Organisation did not immediately reply to a request for comment.

Their appearances come just as the most valuable asset underpinning the president’s $US5.2 billion ($8.1 billion) personal fortune is set to become increasingly tied to the price of bitcoin.

Trump Media and Technology Group, the family’s money-losing social media business, announced Tuesday it was raising $US2.5 billion to buy bitcoin — what chief executive officer Devin Nunes called an “apex instrument of financial freedom.” The company’s balance sheet of cash, cash equivalents and investments were worth $US759 million at the end of the first quarter, according to a filing on Tuesday.

It’s among the highest-profile examples of what’s become a familiar strategy: There are more than 30 public US companies that purchase bitcoin as part of their corporate treasury, according to CoinGecko. Bernstein analysts project bitcoin could see $US330 billion in inflows via corporate treasuries before 2030.

The token climbed above $US111,000 last week for the first time ever and has gained roughly 55 per cent since Trump’s election win in November. Trump Media, by comparison, is down about 34 per cent over the same period.

Bitcoin buyers

Making bitcoin part of the balance sheet is especially taking hold among Trump-related businesses.

On the same day Trump Media unveiled its plans, PSQ Holdings, the “anti-woke” retailer where Trump Jr. is a board member, said it intends to “explore” a new stockpile of digital assets, while Strive Asset Management, co-founded by Vivek Ramaswamy, announced a $US750 million transaction to help it fund its own bitcoin war chest.

It’s popular with members of Trump’s administration, too. Cantor Fitzgerald’s special purpose acquisition company Cantor Equity Partners, helmed by Commerce Secretary Howard Lutnick’s son Brandon, is teaming up with Tether Holdings and Softbank Group to create a new digital-asset venture called Twenty One Capital with the goal of accumulating bitcoin.

Eric Trump and Donald Trump Jr are becoming regular guests at crypto conferences.Credit: Bloomberg

Other major holders include Tesla, led by top Trump donor Elon Musk, Metaplanet, the Tokyo-based company where Eric Trump is an adviser, and Hut 8, which is a majority stakeholder in a newly formed bitcoin mining company backed by Trump’s family.

For Trump Media, the bitcoin pivot comes as it struggles to make money with its social-media network Truth Social. The company, which has long traded like a meme stock decoupled from fundamentals, reported losing $US38 million on revenue of $US820,000 in the first quarter. Last year it reported a $US401 million net loss.

The president, through a trust managed by his eldest son, owns Trump Media shares worth about $US2.6 billion, according to the Bloomberg wealth index.

The company agreed to sell around $US1.5 billion in stock and $US1 billion in convertible bonds for the bitcoin purchase, with the offering expecting to close on May 29. Cantor Fitzgerald advised on the deal.

Bloomberg

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