Original author: Tom Maloney, Bloomberg
Translation by: Luffy, Foresight News
Hours before voting ended on U.S. Election Day, Donald Trump's social media company released a dismal financial update: in the first nine months of 2024, the company generated only $2.6 million in sales, with operating losses reaching $363 million.
But less than 12 hours later, as news of the former president's overwhelming return to the White House became clearer, the company's stock price soared by 60%, instantly increasing Trump's personal wealth by $2.4 billion.
The market is always predicting who will hold the reins of power in Washington. But if one were to assess the net worth of a U.S. president, there is no clearer way than to look at Trump's personal wealth. The Bloomberg Billionaires Index estimates Trump's personal wealth at approximately $6.7 billion.
Trump's victory would solidify his business empire across media, real estate, and cryptocurrency, an empire that largely relies on his image, brand, and most importantly, his political power. Additionally, Trump is now capable of resolving multiple legal disputes that threaten his business and freedom, making the outlook for many of his investments brighter than ever.
One of the many benefits of being president is that this authoritative position is likely to provide a significant advantage in the difficult negotiations regarding some of Trump's real estate assets. Real estate experts say that because Trump occupies a central position in Republican politics, the value of his Palm Beach club, Mar-a-Lago, has increased. Moreover, investors, whether American or from other countries, will seek to work with him to establish some connection with the White House.
"Perhaps his net worth will reach $100 billion. I don't know; he'll figure it out, he really will," said Louise Sunshine, former executive vice president of the Trump Organization who was involved in the development of Trump Tower. "He will be wealthier and more powerful than ever."
Donald Trump arrives at the Palm Beach Conference Center to participate in an election night watch party.
Shares of Trump Media & Technology Group (stock code: DJT) experienced a brief rise on Wednesday, ultimately increasing by 5.8%.
But experts say that regaining the presidency means that 78-year-old Trump is just beginning to reap the economic rewards of his extraordinary political comeback. Eric Trump, executive vice president of the Trump Organization and Donald Trump's second son, did not respond to requests for comment.
Trump Media & Technology Group
The most significant growth in Trump's wealth comes from Trump Media & Technology Group. This company is his largest asset during the election period, valued at $3.9 billion. For a long time, the company's stock price has traded independently of fundamentals, often resembling a betting market related to Trump's return to the White House.
Whether the company can maintain its nearly $8 billion market value remains an open question. On Tuesday, Trump Media & Technology Group reported a $19 million loss in the third quarter, with revenue of only $1 million, indicating that even during the mid-election season, demand for advertising on the Truth Social platform is scant.
During the Nashville 2024 Bitcoin Conference, a Moonshot booth displayed the logo of Donald Trump. Image source: Bloomberg
There have been occasional unverified speculations that Trump's most famous billionaire supporter, Elon Musk, might merge Truth Social with X. Neither party has acknowledged such rumors, but Truth Social announced this week that it "will continue to explore other growth possibilities, including potential mergers."
Trump has experienced many failures during his business career. He once tried to capitalize on the popularity of The Apprentice (note: The Apprentice is a reality television show co-produced by Mark Burnett and Trump's production company, which premiered in January 2004, and Trump served as the host) by branding products like Trump Water, Trump Vodka, Trump Perfume, and Trump Steaks, most of which failed. To this day, he still has some failures, such as a Bible he endorsed from which he made $300,000.
However, cryptocurrency has opened a new and profitable avenue for promoting the Trump brand.
Cryptocurrency venture capital
According to a disclosure document from Trump in August, his NFT collection (digital trading cards showcasing various poses and outfits of him, each priced at $99) generated total revenue of $7.2 million.
Arca portfolio manager Sasha Fleyshman stated, "While Trump's victory would have an indirect impact on collectibles associated with him, these impacts are mostly based on nostalgia and have no strong correlation with the election in the long run."
At the 2024 Bitcoin Conference held in Nashville, cards featuring portraits of Donald Trump and Silk Road founder Ross Ulbricht were on sale. Image source: Bloomberg
World Liberty Financial, operated by the Trump family, has sold millions of dollars in tokens to fund a yet-to-be-created cryptocurrency lending platform. Trump has embraced cryptocurrency and pledged some support for the industry, such as firing SEC Chairman Gary Gensler.
Mar-a-Lago
As for the venue for Trump's election night watch party, Mar-a-Lago has always been a prime location; however, as the winter White House for the U.S. president, its value has increased to another level.
During Trump's first term, he spent a long time there planning several significant actions, such as the assassination of a senior Iranian general. This place has been a must-visit for corporate executives, lobbyists, and foreign emissaries hoping to connect with Trump. Even after Trump's defeat in 2020, it remains at the core of his image.
Mar-a-Lago in Palm Beach, Florida. Image source: Getty Images
According to his latest ethical disclosure, the Bloomberg Billionaires Index values Mar-a-Lago at $250 million. Over the 16 months from January 2023 until now, he earned $56 million, compared to $21 million in 2021.
The club manager at Mar-a-Lago told Bloomberg in June that starting in October, new membership fees have risen from $700,000 to $1 million. Before Trump's victory in 2016, Mar-a-Lago's membership fee was $100,000.
Real estate
Trump's New York properties will also benefit from his new presidential status, including a commercial office building located at 40 Wall Street in downtown Manhattan.
The occupancy rate of the office building in June was 74%, down from 98% in 2015, when the company issued a $160 million loan. The office building has been affected by the rise of remote work post-COVID and high interest rates, with downtown Manhattan being one of the hardest-hit areas in New York. According to the latest loan review, the Art Deco building from the 1920s generated just enough profit in June to cover 62% of its debt costs.
Trump Tower located at 40 Wall Street in New York's Financial District. Image source: Bloomberg
Ruth Colp-Haber, CEO of the Wharton Real Estate Advisors, said, "For obvious reasons, any aggressive action from lenders or landlords will be difficult to implement if Trump is president."
Even the operation of Trump Tower itself is concerning. The Trump Organization extended its lease with Gucci in 2020 in exchange for rent relief. However, in January of this year, Gucci's parent company, Kering Group, bought the building across the street at 715-717 Fifth Avenue for $963 million. If this luxury brand leaves, Trump's most iconic Manhattan tower will lose its primary retail tenant. The risks of such an occurrence are now greater than they would be for him as an ordinary citizen.
Colp-Haber stated, "Becoming president means having tremendous influence."
Overseas investments
This influence transcends U.S. borders.
During Trump's first term, he placed his businesses in a trust and transferred control to his two sons to prevent potential conflicts of interest. In October, Eric Trump hinted to The New York Times that the restrictions on the business might weaken.
On October 27, 2022, Donald Trump played golf at the Trump National Doral Golf Club in Miami. Image source: AFP
He said, "During my first term, we did everything possible to avoid any misconduct, but frankly, we were still defeated."
Since 2020, the Trump Organization has expanded its overseas investments, and if Trump stays in the White House for another four years, those investments will benefit immensely. Just this year, the organization announced collaborations in Vietnam to develop golf courses and hotels, and to develop residential buildings in Saudi Arabia, with financial disclosures listing millions in income from India, Oman, and Dubai. Closer to home, the Trump Doral resort in Florida is one of his three golf properties and one of his most valuable assets, having hosted the Saudi-backed LIV Golf league.
Legal challenges
One area that is hard to quantify in monetary terms is the ability of a U.S. president to avoid legal challenges.
Trump will have final authority over the U.S. Department of Justice, and the current president cannot be prosecuted while in office. He will have the power to dismiss or at least indefinitely delay his criminal cases, avoiding the threat of years in prison, and can order his Attorney General to drop two federal indictments that accuse him of trying to overturn the results of the 2020 election and mishandling classified information.
A New York jury found Trump guilty of multiple felonies following his trial for hush money payments, after which Trump's convoy was seen. Image source: Bloomberg
Trump will no longer have the same power in state court regarding his criminal cases, including the so-called hush money case in which he was found guilty of 34 felonies in May. However, he still has strong constitutional grounds to request the annulment of these verdicts, which means the likelihood of him being sentenced in New York on November 26 is low.
"I think power is more alluring to him than money these days," said former Trump Organization executive Sunshine. "Sometimes, power is more important than money."