Returning to the White House, how much will Trump's net worth rise?

Original author: Tom Maloney, Bloomberg

Original translation: Luffy, Foresight News

A few hours before the end of voting day in the United States, Donald Trump’s social media company released a bleak financial update: in the first nine months before 2024, the company’s sales were only $2.6 million, with a whopping operating loss of $363 million.

But less than 12 hours later, as the news of the former president’s overwhelming return to the White House gradually became clear, the company’s stock price soared by 60%, and Trump’s personal wealth instantly increased by $24 billion.

The market is always predicting who will take the reins of power in Washington. But when it comes to assessing the value of the 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 about $67 billion.

Trump’s victory will consolidate his business empire spanning media, real estate, and the cryptocurrency field, which heavily relies on his image, brand, and most importantly, his political power. Furthermore, with the ability to resolve multiple legal disputes that threaten his business and freedom, Trump’s many investment prospects have never been so bright.

One of the many benefits of being president is that this kind of authoritative position is likely to bring huge advantages in the difficult negotiations over some of Trump’s real estate assets. Real estate experts say that because Trump occupies a core position in Republican politics, the value of his Mar-a-Lago Club estate has become higher. Not to mention investors, both Americans and investors from other countries, will seek to collaborate with him to establish some kind of connection with the White House.

“Maybe his net worth will reach 100 billion US dollars. I don’t know, he will figure it out, he really will figure it out,” 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 before.”

Donald Trump arrives at the Palm Beach Convention Center to attend the election night vote counting party.

The stock price of Trump Media Technology Group (stock code: DJT) experienced a brief pump on Wednesday, ultimately rising by 5.8%.

However, experts say that regaining the presidency means that 78-year-old Trump is just beginning to reap the economic rewards of his remarkable 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

Trump’s most notable rise in wealth comes from the Trump Media Technology Group. This company is his largest asset during the election period, worth $3.9 billion. For a long time, the trading price of the company’s stock has been independent of fundamentals, often resembling a gambling market associated with Trump’s return to the White House.

Whether the company can maintain a market capitalization of nearly $8 billion is still an unresolved question. On Tuesday, Trump Media and Technology Group reported a loss of $19 million in the third quarter, with revenue of only $1 million, indicating that there is little demand for advertising on the Truth Social platform, even during the midterm election season.

During the 2024 BTC Conference in Nashville, the booth of Moonshot featured the logo of Donald Trump. Image source: Bloomberg

There have been unconfirmed speculations that Elon Musk, one of Trump’s most famous billionaire supporters, may merge Truth Social with X website. Both sides have not admitted such rumors, but Truth Social said this week that it will continue to explore other possibilities, such as potential mergers.

Trump has had many failures in his business career. He once tried to capitalize on the popularity of The Apprentice, a reality show co-produced by Mark Burnett Productions and Trump Productions, by putting his name on products such as Trump Mineral Water, Trump Vodka, Trump Perfume, and Trump Steaks. Most of these products failed. To this day, he still has some examples of failures, such as a Trump-endorsed Bible from which he made $300,000.

But Cryptocurrency has opened up a new and profitable path for promoting the Trump brand.

Crypto Assets Risk Investment

According to a disclosure document from Trump in August, his Non-fungible Token collection (digital trading cards displaying his various poses and clothing images, each priced at $99) generated a total revenue of $7.2 million.

Arca portfolio manager Sasha Fleyshman said, ‘While Trump’s victory will have an indirect impact on the collectibles associated with him, most of these effects are based on nostalgia and do not have a strong correlation with the election in the long term.’

At the 2024 BTC Conference held in Nashville, cards featuring portraits of Donald Trump and Silk Road founder Ross Ulbricht are being sold. Image source: Bloomberg.

World Liberty Financial, controlled by the Trump family, has sold millions of dollars worth of Tokens to fund an yet-to-be-created Cryptocurrency lending platform. Trump has accepted Cryptocurrency and has pledged to provide certain support to the industry, such as dismissing Gary Gensler, the chairman of the US Securities and Exchange Commission.

Lake Mansion

As for the venue of the Trump election party, the Mar-a-Lago estate has always been a prime location; but as the winter White House for the President of the United States, its value has risen to a new level.

During Trump’s first term, he spent a long time there and planned several major actions, such as the assassination of a senior Iranian general. For business executives, lobbyists, and foreign envoys who want to contact Trump, this is a must-visit place. Even after Trump’s defeat in 2020, it remains the core of his image.

Sea Lake Manor in Palm Beach, Florida. Source: Getty Images

According to his latest ethical disclosure, the Bloomberg Billionaires Index valued the Seaside Manor at $250 million, with earnings of $56 million since January 2023, and $21 million in 2021.

The manager of Trump’s club said in an interview with Bloomberg in June that starting in October, the new membership fee at the Lakeside Manor has risen from $700,000 to $1 million. Before Trump’s victory in 2016, the membership fee at the Lakeside Manor was $100,000.

Real Estate

Trump’s New York properties will also benefit from his new presidency, one of which is a commercial office building at 40 Wall Street in downtown Manhattan.

The occupancy rate of the office building in June was 74%, lower than the 98% in 2015 when the company issued a $160 million loan. The office building has been impacted by the widespread adoption of remote work and high interest rates after the COVID-19 pandemic, and Manhattan’s downtown area is one of the hardest-hit areas in New York. According to the latest loan review, the profit of this Art Deco building from the 1920s in June is only enough to cover 62% of its debt costs.

The Trump Building at 40 Wall Street in New York’s Financial District. Image source: Bloomberg

Ruth Colp-Haber, CEO of Walton Real Estate Advisors, said that under President Trump, “for obvious reasons, any aggressive actions by lenders or landowners will be difficult to implement”.

Even the operation of the Trump Tower itself is worrisome. In 2020, the Trump Group extended its lease with Gucci in exchange for a rent reduction. However, in January of this year, Gucci’s parent company, Kering Group, acquired 715-717 Fifth Avenue across the street for $963 million. If this luxury brand moves out, Trump’s iconic Manhattan tower will lose its main retail tenant. The risks posed by this situation are now greater than when he was a private citizen.

Colp-Haber said, “Being the president means having tremendous influence.”

Foreign Investment

This influence transcends national borders.

During Trump’s first term, he entrusted his business to 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 may be weakened.

On October 27, 2022, Donald Trump played golf at the Trump National Doral Golf Club in Miami. Photo source: AFP

He said, “In the first term, we did everything possible to avoid any improper behavior, but honestly, we were still defeated.”

Since 2020, the Trump Organization has expanded its overseas investments, and these investments will benefit greatly if Trump stays in the White House for another four years. Just this year, the organization has announced partnerships to develop golf courses and hotels in Vietnam, and to develop residential buildings in Saudi Arabia. His financial disclosures list millions of dollars in income from India, Oman, and Dubai. Closer to home, 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

An area that is very difficult to quantify with money is the ability of the US president to avoid legal challenges.

Trump will have the ultimate power over the US Department of Justice, and the incumbent president will not be prosecuted during his tenure. He will have the power to reject or at least indefinitely delay his criminal cases, avoiding the threat of years of imprisonment, and can order his Attorney General to dismiss two federal indictments that accuse him of attempting to overturn the failed results of the 2020 election and mishandling classified information.

After the New York jury convicted Trump of multiple felonies for hush money, Trump’s motorcade. Image source: Bloomberg

Trump will no longer have the same powers in state courts for his criminal cases, including the so-called hush money case in May when he was convicted of 34 felonies. However, he still has strong constitutional grounds to seek the reversal of these judgments, meaning that the likelihood of his sentencing in New York on November 26 is slim.

“I think for him now, power is more tempting than money,” said Sunshine, former executive of the Trump Group. “Sometimes, power is more important than money.”