World Liberty Financial Makes $3 Million Investment in Mantle Tokens Amid Portfolio Losses
This purchase comes at a time when the President Trump-backed decentralized finance (DeFi) project, Mantle, faces an unrealized loss exceeding $100 million, drawing attention to WLFIs strategy.
WLFI Expands Mantle Holdings Despite Market Challenges
WLFIs latest acquisition includes 3.54 million MNT tokens, purchased at an average price of $0.84 per token using Tether (USDT). This purchase follows a similar transaction made just the previous week, in which the firm spent $2 million to acquire 2.45 million MNT tokens at $0.81 each. With the most recent buy, WLFI now holds a total of 5.98 million MNT tokens, worth approximately $5 million.
This investment has had a slight positive effect on MNTs price, which rose by 7.3% within 24 hours after the announcement. The tokens trading volume also saw a notable surge of 72.7%, indicating increased market activity and investor interest.
WLFI Faces Significant Unrealized Losses in Broader Portfolio
Despite the surge in MNTs value, WLFIs broader cryptocurrency portfolio is facing considerable declines. The firm has invested a total of $346 million across 11 tokens, including well-known cryptocurrencies such as Ethereum (ETH), Wrapped Bitcoin (WBTC), and Chainlink (LINK). However, the current value of WLFIs holdings is just $234.6 million, leaving the firm with an unrealized loss of $111.4 million.
WLFIs Investment Strategy Amid Losses
WLFI has been actively acquiring assets despite the downturn in market conditions. Since late February, the firm has spent $28.6 million to purchase additional assets, including AVAX, MNT, ETH, and WBTC, among others. Despite this continued spending, WLFI is facing a loss of $1.62 million on these assets, leading to speculation about the firms broader strategy.
Some analysts have questioned why WLFI continues its investment strategy in the face of significant losses. One speculated that WLFI may have access to insider information or might be part of a larger strategic move. Another theory suggests that WLFIs investments could be tied to collaborations with certain projects, as some of the tokens in WLFIs portfolio are said to be supporting the firm.
Scrutiny on WLFIs Future Moves
As WLFI navigates through this challenging financial landscape, its investment decisions will continue to attract attention. Investors and analysts are closely watching to see whether WLFIs strategy will pay off or if further losses are on the horizon.
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Text source: Coindoo
