How The Trumps Blew $1 Billion On Bitcoin

In May 2025, following Donald Trump's return to the White House, his sons made a significant, leveraged bet on Bitcoin, aiming for substantial gains. At the time, Bitcoin was priced at $108,000, and the Trump siblings predicted it would exceed $170,000 within a year, citing their father's presidency as a positive factor. To fund this venture, Trump Media and Technology Group, with Donald Trump as the primary beneficiary and his sons managing its operations, sold $1.4 billion in stock and $1 billion in convertible bonds. These proceeds were then invested in Bitcoin. The transaction reduced Donald Trump's stake in Trump Media to 41% and transformed him into a major Bitcoin investor. Initially, the price of Bitcoin rose after the purchase, reaching $119,000 by July. However, the market stalled, and in August, Trump Media invested an additional $114 million in Cronos. By late November, a market downturn impacted riskier assets, causing the value of Trump Media's crypto holdings, initially purchased for $2.4 billion, to drop to an estimated $1.8 billion. The company attempted to mitigate losses by hedging about a third of its Bitcoin holdings. In January, elevated interest rates signaled by the Fed Chairman further depressed Bitcoin's value, bringing Trump Media's holdings down to an estimated $1.7 billion. The hedges were extended until June, but their effectiveness remains uncertain. Despite these challenges, a spokesperson for Trump Media stated that their Bitcoin holdings represent a long-term investment. However, investors have reacted negatively, with Trump Media's stock price falling more significantly than Bitcoin's. Currently, with Bitcoin around $72,000, Trump Media's crypto assets are valued at an estimated $1.4 billion, a $1 billion loss from their peak investment. Donald Trump's personal stake in Trump Media has also decreased by $1.6 billion since his sons' optimistic Bitcoin forecasts.