Donald Trump’s Crypto Firm WLFI is Down $88M on Ethereum

Donald Trump’s crypto investment firm, World Liberty Financial (WLFI), is experiencing major losses as the crypto market continues to decline. WLFI, which has made investments in multiple digital assets, is now seeing an unrealized loss of approximately $88 million from its Ethereum (ETH) holdings alone. 

Ethereum Takes the Biggest Hit in WLFI’s Portfolio

Ethereum remains the biggest contributor to WLFI’s losses, making up 65% of the firm’s total portfolio decline. The investment firm had purchased 67,880 ETH at an average price of $3,240 per token, totaling an investment of $220 million. However, with Ethereum’s price currently hovering around $2,000, the firm’s holdings have significantly dropped in value. Based on the latest data, WLFI’s Ethereum holdings are now worth just $132 million, leading to a massive unrealized loss of $80.85 million. 

WLFI’s Crypto Investments in Trouble Beyond Ethereum

While Ethereum has been the biggest contributor to WLFI’s losses, other cryptocurrencies in its portfolio have also seen declines, though to a lesser extent. Among these holdings, Tron (TRX) has been the most stable, losing only 5% in value. This minimal drop has made it one of the firm’s least volatile assets in the current downturn.

WLFI has also invested in Staked Ethereum (stETH), WHITE, Movement (MOVE), and Ondo, all of which have suffered losses. These assets, although not as heavily weighted in WLFI’s portfolio as Ethereum, have contributed to the firm’s overall decline. Bitcoin is another major holding, with WLFI investing approximately $82.7 million in BTC. 

The firm’s USDT (Tether) holdings, totaling 13.62 million USDT, have remained stable, as they are pegged to the U.S. dollar. However, these holdings have not provided any substantial gains to offset the losses incurred from its other cryptocurrency investments. With the total value of WLFI’s portfolio shrinking from $336 million to $226 million, the firm is now facing an overall loss of $110 million across its investments.

World Liberty Financial Continues to Invest Despite Market Decline

Even with these losses, WLFI remains committed to its cryptocurrency investments. On March 6, the firm purchased an additional $21.5 million worth of Ethereum, Wrapped Bitcoin (WBTC), and Movement Network tokens. This move suggests that WLFI views the ongoing market decline as an opportunity to buy assets at lower prices in anticipation of future price recoveries.

The firm has also announced a new partnership with Sui, a blockchain project developed by former Meta engineers.

This collaboration aims to explore new decentralized finance (DeFi) opportunities and expand WLFI’s reach in the blockchain space. Analysts believe this partnership is part of WLFI’s broader strategy to integrate with emerging blockchain ecosystems and strengthen its influence in the industry.