After acquiring hundreds of millions of dollars worth of cryptocurrencies since its launch in September, World Liberty Financial said Wednesday it plans to create a strategic reserve of digital assets.
The crypto company started by President Donald Trump and his sons said the token reserve, dubbed Macro Strategy, is designed to “bolster leading projects like Bitcoin and Ethereum” and emerging DeFi opportunities.
“By diversifying our holdings across a spectrum of tokenised assets, we aim to mitigate market volatility and ensure a resilient financial ecosystem,” the project’s announcement on X said.
Stockpile
Yet the move comes after massive, unexplained outflows from WLF last week.
On February 2, the company owned more than $400 million in crypto, mostly Ethereum and wrapped Bitcoin. Yet now the company’s wallet now only holds $39 million worth of crypto assets.
The company denied reports that it sold those tokens, and said the fund flows were “routine movements of its crypto holdings” to cover fees and expenses.
“We are simply reallocating assets for ordinary business purposes,” the company said last week.
Last week, World Liberty co-founder Chase Herro said the onchain stockpile will show the company’s commitment to the crypto industry.
How it will do so is not clear. World Liberty hasn’t been a long-term holder of its crypto stash, at least not on its publicly known wallet address.
World Liberty also acquired Tron and Move cryptocurrencies as well as stablecoins including Circle’s USDC ($1.00) and Tether’s USDT ($1.00).
However, onchain data shows fund movements from World Liberty’s wallets to addresses labelled as Coinbase Prime by crypto tracker Arkham Intelligence.
Coinbase Prime users are mostly institutional, leading some to speculate that World Liberty sold tokens during the market lull.
Osato Avan-Nomayo is our Nigeria-based DeFi correspondent. He covers DeFi and tech. Got a tip? Please contact him at [email protected].
