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Donald Trump-Backed WLFI’s $336M ‘Buy the Dip’ Backfires With Heavy Losses

Donald Trump-Backed WLFI’s $336M ‘Buy the Dip’ Backfires With Heavy Losses

CCN2025/03/05 16:00
By: CCN
MOVE+0.73%ETH-0.29%ENA-1.52%
Key Takeaways
  • The WLFI project has sold 24.93 billion WLFI tokens in its sale, raising almost $550 million.
  • WLFI’s portfolio’s unrealized losses may have peaked at around $88 million.
  • The project has purchased another $21.5 million amid the market slump.

President Donald Trump-backed World Liberty Financial’s (WLFI) crypto portfolio is in the red despite multiple “buy the dip” efforts from the team over the past three months.

However, with its latest round of investments, the project’s tens of millions in unrealized profits may have received a brief respite ahead of the White House’s first crypto summit.

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WLFI Portfolio Down

According to CoinGecko data , WLFI’s aggressive crypto investment strategy has resulted in significant unrealized losses across all nine tokens held in its Coinbase Prime account.

The firm’s $336 million portfolio is primarily composed of Ethereum (ETH) at 60.4%, followed by Wrapped Bitcoin (wBTC) at 29%. The remaining allocations include Tron (TRX) at 3%, Movement (MOVE) at 2%, AAVE at 2%, Chainlink (LINK) at 2% and Ethena (ENA) at 1%.

As part of its treasury management strategy, the Trump-backed DeFi project transferred its entire crypto stash to Coinbase Prime. The move was intended to cover operational expenses, fees, and working capital requirements.

“To be clear, we are not selling tokens—we are simply reallocating assets for ordinary business purposes,” WLFI wrote.

Donald Trump-Backed WLFI’s $336M ‘Buy the Dip’ Backfires With Heavy Losses image 0 WLFI portfolio performance. Source: CoinGecko.

At its worst, the portfolio faced estimated peak paper losses of $88 million. However, recent well-timed purchases have helped trim losses to $34 million.

One month after the purchase, analysts estimated the portfolio’s peak paper losses at $88 million.

At the time, among the hardest-hit assets, Ethena (ENA) suffered the steepest percentage decline, down 63%. Meanwhile, Ethereum (ETH) incurred the largest absolute loss, with a $67.35 million deficit (-31%).

Fresh Purchases

Despite the downturn, WLFI has doubled down on its crypto holdings .

According to Arkham Intelligence data , the firm increased its Ethereum (ETH) stash from 2,500 ETH to 7,100 ETH as of March 6, 2025—an addition worth roughly $10 million.

WLFI has also expanded its wrapped Bitcoin (wBTC) holdings, investing $9.95 million to raise its total from 52 to 163 wBTC. Additionally, the project acquired 3.42 million Movement (MOVE) tokens, valued at $1.45 million.

These purchases have provided a temporary boost to the portfolio so far. However, it remains unclear whether the DeFi firm has sold any of the assets it transferred to Coinbase Prime, as Arkham’s data only tracks on-chain movements.

The renewed investment comes just days before the first-ever White House crypto summit on Friday, March 7.

At this summit, industry leaders, regulators, and crypto advocates will discuss the U.S.’s role in the future of digital assets.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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