World Liberty Financial faces heavy losses amid market decline
WLFI faces up to $160M losses as crypto market downturn deepens.
World Liberty Financial Inc. (WLFI), the crypto venture linked to U.S. President Donald Trump, is grappling with severe financial setbacks amid a broad downturn in the digital asset market.
The company has reported unrealized losses ranging between $88 million and $160 million as market instability takes its toll on its aggressive investment strategy.
Market Woes and Investment Struggles
WLFI entered the crypto space with high expectations and a strong portfolio of digital assets. However, as market conditions deteriorated, its holdings have suffered dramatically. On March 6, 2025, WLFI transferred $25 million in USD Coin (USDC) to a multi-signature wallet and deployed $21.5 million to purchase key assets.
These acquisitions included 4,468 Ether (ETH) at approximately $2,238 per token, 110.6 Wrapped Bitcoin (WBTC) at around $90,420 each, and 3.42 million Movement Network (MOVE) tokens priced at $0.439 apiece. Despite these strategic moves, the overall valuation of WLFI’s portfolio has plummeted, reflecting a market-wide sell-off triggered by heightened regulatory scrutiny, global economic uncertainty, and liquidity crunches.
Portfolio Breakdown and Losses
WLFI’s current portfolio is heavily weighted in major cryptocurrencies: 60.4% in ETH, 29% in WBTC, 3% in Tron (TRX), 2% in MOVE, and the remaining 6% distributed among AAVE, Chainlink (LINK), and Ethena (ENA). Although this concentrated distribution aimed to mitigate risk, the ongoing market decline has left WLFI with significant losses. Some estimates indicate that losses may have escalated from an initial $88 million to as much as $160 million.
Future Outlook
Despite the setbacks, WLFI has not signaled any intention to alter its long-term strategy. The firm remains focused on accumulating top-tier crypto assets, anticipating a market recovery that could eventually restore investor confidence. However, with regulatory pressures intensifying and market volatility persisting, WLFI’s path forward remains uncertain. As stakeholders monitor developments closely, WLFI’s experience could serve as a cautionary tale about the risks inherent in high-stakes investments in the rapidly evolving digital asset space.
Recently we wrote, that at a recent White House Crypto Summit, Michael Saylor, chairman of Strategy, delivered a bold proposal that could reshape the U.S. financial system by leveraging Bitcoin’s unique properties.
