World Liberty Financial (WLFI), a crypto project endorsed by President-elect Donald Trump, has executed substantial crypto movements, sparking discussions about its treasury management strategies.
Massive Crypto Moves: $61.4M in Ethereum Transferred
Blockchain analysis by Arkham Intelligence revealed that WLFI shifted $61.4 million worth of Ethereum (ETH) within 24 hours. The transfers were routed to multiple wallets, including Coinbase Prime, a custodial service for institutional investors.
WLFI clarified on social media platform X that these transactions were routine treasury activities aimed at managing operational expenses, fees, and liquidity. Importantly, no assets were sold during these movements, underscoring their operational nature.
Strategic Asset Swaps and Wallet Updates
Arkham data provided deeper insights into WLFI’s crypto operations. Key transactions included:
- Swapping 103 Wrapped Bitcoin (WBTC) for 3,075 ETH, worth approximately $10 million.
- Transferring $59.8 million worth of Ethereum to Coinbase Prime and other wallets.
- Using $1.7 million in Tether (USDT) to acquire 17.62 WBTC at an average price of $96,490 per Bitcoin.
These moves reflect WLFI’s active engagement in optimizing its crypto holdings for operational needs and strategic investments.
Treasury Balance and Unrealized Losses
Despite these significant activities, WLFI’s wallet balance has dropped from $83 million in mid-December to $17 million as of this report. The organization attributed the decline to ongoing treasury management and operational requirements.
However, the project faces unrealized losses of $4.8 million, primarily due to market volatility affecting assets such as Ethereum, WBTC, Aave (AAVE), and Chainlink (LINK). WLFI’s decision not to liquidate assets suggests a long-term investment approach amidst fluctuating market conditions.
Expanding Ecosystem with sUSDe Stablecoin
Beyond treasury management, WLFI is expanding its ecosystem. The project recently collaborated with Ethena Labs to integrate the sUSDe stablecoin into its Aave system. This stablecoin, supported by Bitcoin collateral and held on Ethereum, highlights WLFI’s efforts to bolster its ecosystem’s stability and utility.
