Forbes: Trump joins the ranks of the leading Bitcoin investors in the United States, with an indirect holdings of approximately $870 million.

According to a recent report by Forbes, although Donald Trump has never mentioned Bitcoin in his public financial disclosure documents, it is estimated that he indirectly holds approximately $870 million worth of Bitcoin through his stake in Trump Media and Technology Group, making him one of the largest Bitcoin investors in the world. Trump Media and Technology Group (which operates Truth Social) raised $2.3 billion in funding earlier this year through the issuance of stock and debt, and in July used $2 billion of that to establish a Bitcoin reserve. Despite Trump's public criticism of Crypto Assets in 2019 as 'based on thin air,' he has made a significant shift from 'crypto skeptic' to 'Bitcoin bullish.'

The Hidden Crypto Assets: $870 Million Bitcoin Position

· Significant assets held indirectly: Trump's Bitcoin position does not directly appear in his government financial disclosures or the asset reports of the Trump Organization. This substantial asset is indirectly realized through his holdings in Trump Media Technology Group (Trump Media) shares.

· Estimation method:

• Fundraising and Investment: In May of this year, Trump Media Technology Group raised $2.3 billion through the issuance of a large number of stocks and debts.
• Bitcoin Reserve: In July, the company invested $2 billion into its Bitcoin reserve.
• Price rise: Since Trump's media bet on Bitcoin, the price of Bitcoin has risen by about 6%, bringing the valuation of the reserve to approximately $2.1 billion.
• Trump's shareholding: After the issuance of new shares, Trump's stake in the company was diluted to 41%.
• Individual share estimate: Trump's personal Bitcoin share is approximately 41% * 2.1 billion USD ≈ 870 million USD.

· Joining the Ranks of Top Bitcoin Investors: With $870 million in Bitcoin, Trump becomes one of the few billionaires on Earth who owns more Bitcoin assets, second only to the Winklevoss twins (possibly over $8 billion), Michael Saylor (holding $5 billion through Strategy, with an additional $2.2 billion personally), and Tim Draper (holding $3.6 billion worth of Bitcoin seized from the “Silk Road”).

A Stunning Shift in Position: From “Crypto Skeptic” to “Bullish”

· Past Criticism: During his first term, Trump was a strong critic of Crypto Assets. In 2019, he tweeted: “I don't like Bitcoin and other Crypto Assets, they are not money, their value is highly unstable and based on thin air.” He also believed that unregulated Crypto Assets could “fuel illegal activities.”

· Opportunistic business transformation: Trump's shift towards Crypto Assets reflects his opportunistic business and marketing strategies. During his time away from the White House, he began to venture into the crypto space:

• NFT: First, sold non-fungible token (NFT) trading cards, easily earned millions of dollars.
• World Liberty Financial: As the 2024 elections approach, he and his three sons launched a crypto project called World Liberty Financial.
• Post-election surge: After winning the election, the crypto community poured significant investments into the World Liberty token, which Forbes estimated increased Trump's net worth by over 1 billion dollars. Subsequently, a meme coin he launched also added nearly 1 billion dollars to his wealth.

· Industry Boost from Presidential Term: The dawn of a second Trump presidential term has boosted the asset values across the industry. From Election Day last November to May this year, the price of Bitcoin rose by 60%.

Balancing Ethics and Finance: Bitcoin Bets and Company Valuation

· New Maximum Liability: To finance the acquisition of Bitcoin, Trump Media issued $1 billion in convertible bonds and $1.4 billion in stock. Trump has taken on a share of corporate debt amounting to $400 million, which is now the largest loan in his portfolio, surpassing any of his real estate mortgages.

· The White House's stance on ethics: White House Press Secretary Karoline Leavitt insisted, “The President and his family have never and will never engage in conflicts of interest.” However, she immediately stated that the current administration is working through executive actions and legislative support to make America the global hub for Crypto Assets.

· Stock Price Performance and Future Expectations: Investors may initially hope that the addition of Bitcoin could spark a Meme-Stock frenzy. However, despite a strengthened balance sheet with billions of dollars in Bitcoin and billions in debt, Trump's media company currently has a market value that is $1.2 billion lower than before its pivot to Bitcoin. This suggests that, excluding the Bitcoin factor, investors believe that its initial media business is now worth only 60% of its valuation in May. However, given that Trump has three years left in his term, if Bitcoin prices continue to rise and receive a boost from allies in the White House, his loyal followers may once again drive up the stock price, adding hundreds of millions or even billions of dollars to Trump's fortune.

Conclusion

Donald Trump's hidden Bitcoin position is not only a massive personal fortune but also symbolizes his complete shift in stance on Crypto Assets. This indirect holding through corporate assets reflects his strategy of converting political influence into business benefits. Trump's significant bet on Bitcoin has made his media technology group an important player in the global Crypto Assets market and signals the dawn of a “crypto-friendly” era driven by political preferences.

Disclaimer: This article is for informational purposes only and does not constitute any investment advice. The crypto market is highly volatile, and investors should make decisions cautiously.