For Trump, power is more important than money.
Written by: Tom Maloney, Bloomberg
Translated by: Luffy, Foresight News
In the hours leading up to the end of voting 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's sales were only $2.6 million, with an operating loss of up to $363 million.
But less than 12 hours later, as news emerged that the former president was poised to return to the White House with an overwhelming advantage, the company's stock price soared by 60%, instantly increasing Trump's personal net worth by $2.4 billion.
The market is always predicting who will wield power in Washington. But if you want to assess the worth of a U.S. president, there’s no clearer way than looking at Trump's personal wealth. The Bloomberg Billionaires Index estimates Trump's personal fortune at around $6.7 billion.
Trump's victory would solidify his business empire spanning media, real estate, and cryptocurrency, which largely relies on his image, brand, and, most importantly, his political power. Additionally, with Trump now able to resolve multiple legal disputes threatening his business and freedom, many of his investment prospects have never looked brighter.
One of the many benefits of being president is that this authoritative position is likely to provide a significant advantage in the tough 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. Not to mention that investors, whether American or from other countries, will seek to partner with him to establish some connection to the White House.
"Maybe 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 richer and more powerful than ever."
Donald Trump arrives at the Palm Beach Convention Center for the election night watch party.
The stock price of Trump Media & Technology Group (ticker: DJT) experienced a brief surge on Wednesday, ultimately rising by 5.8%.
But experts say 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 obvious 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 its fundamentals, often resembling a betting market related to Trump's return to the White House.
Whether the company can maintain a market value of nearly $8 billion remains an open question. On Tuesday, Trump Media & Technology Group reported a loss of $19 million in the third quarter, with revenue of only $1 million, indicating that even in the midst of the election season, demand for advertising on the Truth Social platform (note: Truth Social is a social media platform under Trump Media & Technology Group) is minimal.
Donald Trump's logo displayed at the Moonshot booth during the Nashville 2024 Bitcoin Conference. Image source: Bloomberg.
There have been occasional unverified speculations that Trump's most famous billionaire supporter, Elon Musk, might merge Truth Social with the X website. Neither party has confirmed such rumors, but Truth Social stated this week that it "will continue to explore other growth possibilities, including potential mergers."
Trump's business career has seen its share of failures. He attempted to capitalize on the popularity of "The Apprentice" (note: "The Apprentice" is a reality television show co-produced by Mark Burnett Productions and Trump Productions, which premiered in January 2004, with Trump 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 failed ventures, such as a Bible he endorsed, from which he made $300,000.
But cryptocurrency has opened a new, lucrative avenue for promoting the Trump brand.
Cryptocurrency Venture Capital
According to a disclosure document from August, Trump's NFT collection (digital trading cards showcasing various poses and outfits of him, each priced at $99) generated a 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 effects are largely based on nostalgia and have little strong correlation with the election in the long run."
Cards featuring Donald Trump and Silk Road founder Ross Ulbricht for sale at the 2024 Bitcoin Conference in Nashville. Image source: Bloomberg.
World Liberty Financial, run by the Trump family, has sold millions of dollars worth of tokens to fund a yet-to-be-created cryptocurrency lending platform. Trump has embraced cryptocurrency and promised to provide certain support to the industry, such as firing SEC Chairman Gary Gensler.
Mar-a-Lago
As for Mar-a-Lago, the venue for Trump's election night watch party, it has always been a prime location; but as the winter White House of the U.S. president, its value has risen to another level.
During Trump's first term, he spent a significant amount of time there, orchestrating several major actions, such as the assassination of a senior Iranian general. For corporate executives, lobbyists, and foreign emissaries hoping to connect with Trump, it is a must-visit place. Even after Trump's defeat in 2020, it remains central to 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, with an income of $56 million over the 16 months from January 2023 to now, compared to $21 million in 2021.
Trump's club manager told Bloomberg in June that starting in October, the new membership fee for Mar-a-Lago has increased from $700,000 to $1 million. Before Trump's victory in 2016, the 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 this office building was 74% in June, down from 98% in 2015, when the company issued a $160 million loan. The office building has been impacted 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, this Art Deco building from the 1920s generated enough profit in June to cover only 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 Wharton Real Estate Advisors, stated that under Trump's presidency, "for obvious reasons, any aggressive actions by lenders or landlords will be difficult to implement."
Even the operation of Trump Tower itself is concerning. The Trump Organization extended its lease with Gucci in 2020 in exchange for rent reductions. But in January of this year, Gucci's parent company, Kering, purchased the property across the street at 715-717 Fifth Avenue for $963 million. If this luxury brand moves out, Trump's most iconic Manhattan tower will lose its main retail tenant. The risks associated with such a scenario are greater now than when he was a private citizen.
Colp-Haber stated, "Being president means having immense influence."
Foreign Investments
This influence extends beyond 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 these restrictions on the business might weaken.
On October 27, 2022, Donald Trump plays golf at the Trump National Doral Golf Club in Miami. Image source: AFP.
He said, "During the first term, we did everything possible to avoid any impropriety, 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, these investments will benefit immensely. Just this year, the group announced partnerships to develop golf courses and hotels in Vietnam and residential buildings in Saudi Arabia, with financial disclosures listing millions of dollars 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 difficult to quantify in monetary terms is the ability of a U.S. president to avoid legal challenges.
Trump would have ultimate authority over the U.S. Department of Justice, and a sitting president cannot be prosecuted while in office. He would have the power to dismiss or at least indefinitely delay his criminal cases, avoiding the threat of years in prison, and could order his Attorney General to drop two federal indictments accusing him of attempting to overturn the results of the 2020 election and mishandling classified information.
A New York jury found Trump guilty of multiple felonies after he was tried for hush money, followed by the convoy Trump was in. Image source: Bloomberg.
Trump will not have the same power over his criminal cases in state court, including the so-called hush money case in which he was convicted of 34 felonies in May. However, he still has strong constitutional grounds to seek to overturn these convictions, meaning the likelihood of a sentencing scheduled for November 26 in New York is low.
"I think for him today, power is more enticing than money," said Sunshine, a former executive at the Trump Organization. "Sometimes, power is more important than money."
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