Donald Trump's crypto investment firm, World Liberty Financial (WLFI), is experiencing major losses as the market continues to decline.

Ethereum remains the biggest contributor to WLFI’s losses, making up 65% of the firm’s total portfolio decline.

World Liberty Financial (WLFI), the crypto investment firm headed by former U.S. President Donald Trump, is reporting major losses as the cryptocurrency market continues to decline. The firm, which has a diversified portfolio of digital assets, is now facing an unrealized loss of approximately $88 million from its Ethereum (ETH) holdings alone.

Ethereum Contributes Heavily to WLFI’s Losses

Ethereum remains the biggest contributor to WLFI’s overall portfolio decline, accounting for 65% of the total decrease. WLFI had initially purchased 67,880 ETH at an average price of $3,240 per token, amounting to a total investment of $220 million. However, with Ethereum’s price currently hovering around $2,000, the firm’s holdings have depreciated significantly.

According to the latest data, WLFI’s Ethereum holdings are now valued at just $132 million, resulting in a massive unrealized loss of $80.85 million from its initial investment.

Other Cryptocurrencies in WLFI’s Portfolio See Milder Losses

While Ethereum has seen the most significant decline, other cryptocurrencies in WLFI’s portfolio have also suffered losses, albeit to a lesser extent. Among these holdings, Tron (TRX) has shown the most stability, losing only 5% of its value. This minimal drop has made it one of WLFI’s least volatile assets in the present downturn.

WLFI has also invested in Staked Ethereum (stETH), WHITE, Movement (MOVE), and Ondo, all of which have sustained some losses. These assets, although not as heavily weighted in WLFI’s portfolio as Ethereum, have contributed to the firm’s overall decline.

Bitcoin is another major holding in WLFI’s portfolio, with the firm investing approximately $82.7 million in BTC. The Bitcoin price has remained relatively stable in recent months, and the firm’s BTC holdings have decreased slightly, resulting in a minimal loss compared to Ethereum.

Furthermore, WLFI’s USDT (Tether) holdings, totaling 13.62 million USDT, have remained stable as they are pegged to the U.S. dollar. However, these holdings have not provided any substantial gains to offset the losses incurred from its other cryptocurrency investments.

Shrinking Portfolio Value Signals Overall Loss for WLFI

As a result of these losses, the total value of WLFI’s portfolio has shrunk significantly from $336 million to $226 million. This decline has resulted in an overall loss of $110 million for WLFI across its investments.

Despite these losses, WLFI continues to invest in cryptocurrencies. On March 6, the firm purchased an additional $21.5 million worth of Ethereum, Wrapped Bitcoin (WBTC), and Movement Network tokens.

This move suggests that WLFI is viewing the ongoing market decline as an opportunity to buy assets at lower prices in anticipation of future price recoveries.

The firm has also announced a new partnership with Sui, a blockchain project developed by former Meta engineers, to explore decentralized finance (DeFi) opportunities and expand its reach in the blockchain space.

This collaboration is part of WLFI’s broader strategy to integrate with emerging blockchain ecosystems and strengthen its influence in the industry.