AI Financial Faces Nasdaq Delisting After 93% Stock Drop on $1.5 Billion Trump-Linked Crypto Bet
Updated
Updated · CNBC · Jun 9
AI Financial Faces Nasdaq Delisting After 93% Stock Drop on $1.5 Billion Trump-Linked Crypto Bet
3 articles · Updated · CNBC · Jun 9
Summary
AI Financial closed at 66 cents on June 8—down 93% from $8.97 before its August World Liberty deal—and has now spent 15 straight trading days below Nasdaq’s $1 minimum.
$348 million in first-quarter losses on WLFI tokens drove the crisis, pushing liabilities above assets and prompting the company to warn in an SEC filing of substantial doubt about its ability to continue.
The company’s core asset has kept shrinking: its 7.3 billion WLFI tokens, acquired in a $1.5 billion transaction, were worth about $412 million on June 8 after the token price fell 72% to roughly 5.7 cents.
AI Financial already borrowed $15 million from World Liberty in January and used some of it to repurchase shares, but the stock stayed depressed; a reverse split remains one possible way to avoid delisting.
The August deal sent roughly $500 million in proceeds to the Trump family, while watchdogs have urged an SEC investigation and the episode has become a cautionary example of investor losses in Trump-linked crypto ventures.