Latest news with #Dominari
Yahoo
5 days ago
- Business
- Yahoo
Dominari Holdings Issues Letter to Shareholders
NEW YORK, June 4, 2025 /PRNewswire/ -- Dominari Holdings Inc. (Nasdaq: DOMH) today issued the following letter to shareholders: Dear Shareholders, I am very proud of what Dominari Securities, our wholly owned subsidiary, accomplished in less than three (3) years and wish to take this opportunity to discuss those accomplishments with you. What began as a vision has grown into a dynamic and respected investment bank with a differentiated market position. Over the past year, we have raised approximately $287.5 million in capital and executed over 35 transactions, across various sectors, geographies, and deal sizes. In total, we have led more than 19 private placements and IPOs in the U.S. markets, helping micro- and small-cap U.S.-based companies bring their growth strategies to life. This proven track record highlights our ability to identify high-quality opportunities, strong deal execution and importantly, the trust we have earned from clients, investors, and partners. Select Transaction Highlights Highlights of some of our recent work include: Unusual Machines, Inc. Unusual Machines (NYSE American: UMAC) ( is an American company that primarily serves the American drone industry by building and selling drone components. The use of drones is expanding and Dominari is honored to have assisted this great company by completing a private placement for them in October of 2024. Since October, Dominari Securities has had the privilege of working closely with Unusual Machines throughout its capital markets journey—including its successful IPO, a follow-on PIPE transaction, and most recently, the completion of a $40 million capital raise. This long-standing partnership reflects our shared vision for UMAC's growth and our commitment to supporting innovative American companies. authID According to the U.S. State Department, in 2020 alone, the FBI estimated more than $4 billion was lost to cybercrime in the United States. ( One American company is working hard to prevent this rise in cybercrime and Dominari is proud to support its mission. authID Inc. (NASDAQ: AUID), based here in the U.S., is a leading provider of biometric identity verification and authentication solutions. authID quickly and accurately verifies a user's identity to protect accounts and other digital assets. Dominari continues to support authID in its capital-raising efforts, most recently serving as Co-Placement Agent for the company's $8.15 million registered direct offering. This follows a previously completed $2.1 million offering and reflects Dominari's ongoing commitment to authID's mission. Dominari's management personally participated in both transactions. American Bitcoin In addition, our partnership with American Data Centers marked a pivotal step in our strategy to support infrastructure-driven innovation in emerging sectors. American Data Centers started as a wholly owned subsidiary of Dominari Holdings. We then expanded its shareholder base through our relationships with our Advisory Board, which then resulted in a merger with Hut 8. This evolution led to the formation of American Bitcoin, a natural extension of its capabilities into the rapidly growing digital mining and treasury sector. Recognizing the strategic opportunity in blockchain infrastructure, we played a key role in advising and supporting the company, which ultimately culminated in its announced IPO through a merger with Gryphon Digital Mining. The transaction positions the combined entity to become a leading player in the sustainable bitcoin mining space with a potential billion-dollar valuation for American Bitcoin if the proposed merger with Gryphon is approved. The transaction exemplifies our ability to identify and guide high-potential companies through transformational growth, from early-stage capital formation to public market readiness. Deal Snapshot Overall, deal flow has accelerated at a meaningful pace and graduated to a higher level of larger deals that help grow American companies. We continue to attract mandates from innovative, high-growth companies, often through referrals, which speaks directly to the credibility we have earned, the quality of our work and the potential for continued growth. Below is a snapshot of the private companies we have raised money to invest in, as of May 30, 2025: Private Transactions SpaceX $ 28,260,357.59 ABTC $ 4,850,000.00 Large US Drone Co. $ 15,041,535.32 C2 Capital Group $ 2,545,690.06 Aquyre $ 11,935,841.77 CentBanx Holdings, Inc. $ 2,500,000.00 DOGE $ 11,544,766.12 Groq $ 2,395,660.00 Cerebras Systems Inc $ 10,678,075.71 Evtec Aluminium $ 2,088,000.00 Diasome $ 8,362,143.00 AdvEn Inc $ 1,570,000.00 Zipline $ 7,098,007.00 Databricks $ 1,079,970.00 SIM $ 7,015,238.00 Cordio $ 879,993.00 xAI $ 6,895,505.49 Grand Total $ 124,740,783.06 Dominari has gained a lot of media attention lately with regards to the companies we have raised money for, both positive and, in my opinion, unjustifiably negative. I will leave it up to you to decide the caliber of these companies, but I consider the above an impressive list. In addition, some in the media have unfairly characterized some of our recent initial public offerings to imply a lesser quality of client. We unequivocally reject these assertions. We will continue to underwrite and participate in initial public offerings and secondary offerings with high quality micro- and small-cap issuers which have been, and will be, thoroughly reviewed and approved by both FINRA and the SEC. The numbers speak volumes to the quality of our issuers and our completed transactions. Of the list below, we have recognized an average return of approximately 344% from pricing to the IPO's 52 week high. Our investors, while fundamental in nature, have and will continue to benefit from the performance of our transactions, the potential for dynamic liquidity and returns in our deals. Issuer Deal Size Unusual Machines, Inc. $5,000,000 Wellchange Holdings Co. Ltd. $8,000,000 PTL Ltd. $5,000,000 Jupiter Neurosciences, Inc. $11,000,000 Leishen Energy Holding Co., Ltd. $5,500,000 Diginex Ltd. $9,225,000 Skyline Builders Group Holding Ltd. $6,000,000 Aureus Greenway Holdings Ltd. $15,000,000 WF Holding Ltd. $8,000,000 Top Win International Ltd. $10,656,000 MasterBeef Group $8,000,000 Everbright Digital Holding Ltd. $6,000,000 Grand Total $ 97,381,000.00 The quote 'Whenever something good is trying to happen, something bad is trying to stop it' is a statement about the pervasive nature of conflict and opposition. It suggests that progress and positive outcomes are often met with resistance, and it generally seems applicable considering some recent articles about Dominari. On January 2, 2025, the Company stock closed at $1.09. On May 15, 2025, our stock closed at $5.61. What happened in those four and half months? A lot. And while the Press Releases, the 10K and 10Q cover all the events since January, the simple answer is 'hard work,' outstanding employees, and our Board of Advisors. The Company's Board of Advisors works very hard to create shareholder value and the proof of that work is a significant increase in the Company's stock price and total Company revenue. Moreover, as of the release of this letter, no Board of Advisory member has sold a single share of stock. I am very proud of our Company, our employees, our Board of Directors, our Board of Advisors and all that we have accomplished. At Dominari, we have cultivated a brand synonymous with visionary thinking, executional excellence, transparency, and reliability. Importantly, we are excited about the road ahead. Thank you for your continued support. Kind regards, Anthony C. HayesCEO of Dominari Holdings, Inc. Contacts: Dominari Holdings Investor RelationsHayden IRBrett Maas, Managing PartnerPhone: (646) 536-7331Email: brett@ View original content to download multimedia: SOURCE Dominari Holdings Inc. Sign in to access your portfolio
The Age
23-05-2025
- Business
- The Age
A tiny bank in Trump Tower is making the president's sons even richer
Brett Maas, a spokesman for Dominari, said none of the company's advisers have sold any shares, and that the firm remained committed to 'its long-term growth strategy'. 'Both the company and its investors believe in the strength of our business model, the calibre of our leadership and the opportunities ahead,' Maas said. The advisers' 'continued ownership reflects a shared belief in the company's future and alignment with the interests of long-term shareholders'. The Trump Organisation did not respond to a request for comment. Regulators warn that penny stocks – typically defined as companies whose shares cost less than $US5 – can be associated with volatile trading and increased susceptibility to fraud. Dominari's business shepherding low-priced companies to US markets could be a hazard, said Jay Ritter, an IPO researcher at the University of Florida. 'These penny stock underwriters are not going to be enhancing anybody's reputation,' Ritter said. Though Dominari has a track record of losing money on its private investments, the Trump brothers have said they see big things ahead for the company. Since they joined, the firm already struck an agreement with Hut 8 Corp, a Bitcoin mining company, that could stand to benefit from their father's vow to make the US the 'crypto capital of the world'. 'I've got a little special twinkle in my eye whenever I see those guys,' Eric Trump said of Dominari's executives in an interview with 'They're an amazing firm. They've brought a lot of great things to us in the past, and so many of those great things have worked out so incredibly well.' Trump ties Though the Trumps haven't been involved in Dominari for long – they became advisers only about three months ago – they've already amassed valuable stakes. They each received 750,000 shares for joining the company, and for meeting 'certain milestones'. Loading Three other Trump Organisation executives hold Dominari shares too. Ronald Lieberman, an executive vice president who joined Dominari as a board member in December, registered to sell most of his shares, worth more than $US1 million as of April. Lawrence Glick, another executive vice president, and chief legal officer Alan Garten registered to sell stakes worth more than $US3 million each. Lieberman, Glick and Garten did not respond to requests for comment. On the February morning that Dominari announced Eric Trump and Trump Jr would join its advisory board – a board that the company rarely mentioned in previous filings – Dominari president Kyle Wool heralded the brothers' business acumen. Wool, who is also chief executive officer of the firm's securities business, has helped shift the company's focus radically since 2022, when it struck a deal to buy a brokerage and pivoted to finance from biotech. He called President Donald Trump's sons his friends, and said that with their help, Dominari would pursue even buzzier industries. 'They're very great businessmen, and I think they both have an interest in the AI and data centre space,' Wool said in a phone interview after the announcement. Wool, who added that he's a member of a Trump golf course in Jupiter, Florida, has boosted his MAGA bona fides by styling himself as an expert on investing in regular appearances on Fox News, promoting 'anything Elon Musk-related', among other things. Yet his track record is hardly pristine. Wool has faced five customer disputes since 2005, according to Finra, the financial industry's self-regulatory body. The most recent of them alleges more than $US1 million of damages. 'Dominari and Mr Wool believe the allegations are wholly without merit, intend to vigorously contest them, and expect that they will prevail at a hearing on the merits,' the broker responded. Asked about his earlier regulatory disclosures in February, Wool denied wrongdoing. 'This is part of being in the industry for many years,' Wool said at the time. 'I vehemently denied that, and I defend myself.' Wool declined a subsequent interview request. Dominari didn't comment on detailed questions about Wool's regulatory history. Revere Securities Before arriving at Dominari, Wool worked at another small investment firm, Revere Securities. His conduct there was the subject of a 2023 legal complaint against him and several Revere colleagues. The complaint offers a window into the accusations of aggressive sales tactics often associated with low-priced securities. A client who hired Wool to manage her investments claimed he made unauthorised trades, racking up more than $US820,000 in fees in less than a year for himself and Revere, according to the complaint. Her account, meanwhile, was saddled with about $US1.5 million of losses. Wool urged the client, a professional female golfer, to invest $US250,000 in a Bitcoin start-up called BCII, which had not yet gone public, the complaint said. The golfer allocated $US50,000, but Wool prodded her to invest more, 'reminding us all of the movie Boiler Room,' the complaint said. The golfer discovered her accounts held stocks she hadn't known about: instead of shares in BCII, she owned a stake in a company called Kerna Health, according to the complaint. Kerna Health was one of Dominari's largest long-term holdings at the end of 2024. 'Mr Wool denies these allegations and will vigorously defend this matter,' states the broker comment on Finra's site. On Wool's listing on the BrokerCheck directory, the matter is now listed as 'settled'. Tight-knit group Dominari's leadership team is a tight-knit group. Wool, who first joined the company's board in 2021, has described CEO Anthony Hayes as 'one of my best friends'. Soo Yu, Wool's wife, is special projects manager and sits on the board. The company lost a net $US37.6 million in the two years to the end of 2024. In the first three months of 2025, it lost an additional $US32.5 million. Loading Wool's pay totalled $US2.8 million in 2024. Yu, a naturalised US citizen who was born in South Korea and cultivates relationships with clients overseas, collected $US2.4 million. In 2023, she earned more than $US8 million, putting her in league with executives at much larger financial institutions. Shapeshifting The corporation that became Dominari started as Spherix Incorporated in 1967. In 2017, it began operating a small-molecule anticancer and antiviral therapeutics firm, and later changed its name to Aikido Pharma Inc. It rebranded once more to Dominari in 2022. In the same year, it agreed to buy a small broker-dealer called FieldPoint. Its Trump Tower lease agreements cost it about $US750,000 a year in rent, filings show. Its track record in IPOs has largely come from penny stocks. Jupiter, Florida-based Jupiter Neurosciences Inc and Hong Kong-based Wellchange Holdings Co are among the companies with shares trading below $US1 after sharp price drops on the public markets. Dominari also made small investments in private businesses that link back to President Donald Trump's orbit. They include a $US100,000 stake in Elon Musk's xAI; $US364,000 in crypto exchange Kraken, whose co-founder Jesse Powell donated $US1 million to Trump's inauguration fund. It held a roughly $US1 million stake in Unusual Machines, where Trump Jr is also an adviser, before the drone company went public in 2024, according to the most recent disclosures. Dominari is moving deeper into cryptocurrency, an industry the Trumps promote. The company started a Bitcoin stockpiling strategy in the same month that the Trumps joined. It held about $US2 million of a Bitcoin exchange-traded fund at the end of March. Loading In another crypto venture, Dominari created a data-centre division in February with the Trumps, and announced it was turning it into a Bitcoin miner in March. A publicly traded company, Hut 8, agreed to hand over almost all of its miners to Dominari's newly formed data-centre division. Hut 8 would get 80 per cent, and the Trumps and their partners would receive the remaining 20 per cent. The new company, American Bitcoin, plans to go public this year by combining with another firm, in another potential opportunity for its owners to profit. Asked about the expertise the Trumps would bring to Dominari, Wool responded that they're 'friends and advisers' and he didn't want to speak for them. Adam Pritchard, who teaches corporate and securities law at the University of Michigan, said one driver for the small bank's selection of the advisers is likely name recognition.
Sydney Morning Herald
23-05-2025
- Business
- Sydney Morning Herald
A tiny bank in Trump Tower is making the president's sons even richer
Brett Maas, a spokesman for Dominari, said none of the company's advisers have sold any shares, and that the firm remained committed to 'its long-term growth strategy'. 'Both the company and its investors believe in the strength of our business model, the calibre of our leadership and the opportunities ahead,' Maas said. The advisers' 'continued ownership reflects a shared belief in the company's future and alignment with the interests of long-term shareholders'. The Trump Organisation did not respond to a request for comment. Regulators warn that penny stocks – typically defined as companies whose shares cost less than $US5 – can be associated with volatile trading and increased susceptibility to fraud. Dominari's business shepherding low-priced companies to US markets could be a hazard, said Jay Ritter, an IPO researcher at the University of Florida. 'These penny stock underwriters are not going to be enhancing anybody's reputation,' Ritter said. Though Dominari has a track record of losing money on its private investments, the Trump brothers have said they see big things ahead for the company. Since they joined, the firm already struck an agreement with Hut 8 Corp, a Bitcoin mining company, that could stand to benefit from their father's vow to make the US the 'crypto capital of the world'. 'I've got a little special twinkle in my eye whenever I see those guys,' Eric Trump said of Dominari's executives in an interview with 'They're an amazing firm. They've brought a lot of great things to us in the past, and so many of those great things have worked out so incredibly well.' Trump ties Though the Trumps haven't been involved in Dominari for long – they became advisers only about three months ago – they've already amassed valuable stakes. They each received 750,000 shares for joining the company, and for meeting 'certain milestones'. Loading Three other Trump Organisation executives hold Dominari shares too. Ronald Lieberman, an executive vice president who joined Dominari as a board member in December, registered to sell most of his shares, worth more than $US1 million as of April. Lawrence Glick, another executive vice president, and chief legal officer Alan Garten registered to sell stakes worth more than $US3 million each. Lieberman, Glick and Garten did not respond to requests for comment. On the February morning that Dominari announced Eric Trump and Trump Jr would join its advisory board – a board that the company rarely mentioned in previous filings – Dominari president Kyle Wool heralded the brothers' business acumen. Wool, who is also chief executive officer of the firm's securities business, has helped shift the company's focus radically since 2022, when it struck a deal to buy a brokerage and pivoted to finance from biotech. He called President Donald Trump's sons his friends, and said that with their help, Dominari would pursue even buzzier industries. 'They're very great businessmen, and I think they both have an interest in the AI and data centre space,' Wool said in a phone interview after the announcement. Wool, who added that he's a member of a Trump golf course in Jupiter, Florida, has boosted his MAGA bona fides by styling himself as an expert on investing in regular appearances on Fox News, promoting 'anything Elon Musk-related', among other things. Yet his track record is hardly pristine. Wool has faced five customer disputes since 2005, according to Finra, the financial industry's self-regulatory body. The most recent of them alleges more than $US1 million of damages. 'Dominari and Mr Wool believe the allegations are wholly without merit, intend to vigorously contest them, and expect that they will prevail at a hearing on the merits,' the broker responded. Asked about his earlier regulatory disclosures in February, Wool denied wrongdoing. 'This is part of being in the industry for many years,' Wool said at the time. 'I vehemently denied that, and I defend myself.' Wool declined a subsequent interview request. Dominari didn't comment on detailed questions about Wool's regulatory history. Revere Securities Before arriving at Dominari, Wool worked at another small investment firm, Revere Securities. His conduct there was the subject of a 2023 legal complaint against him and several Revere colleagues. The complaint offers a window into the accusations of aggressive sales tactics often associated with low-priced securities. A client who hired Wool to manage her investments claimed he made unauthorised trades, racking up more than $US820,000 in fees in less than a year for himself and Revere, according to the complaint. Her account, meanwhile, was saddled with about $US1.5 million of losses. Wool urged the client, a professional female golfer, to invest $US250,000 in a Bitcoin start-up called BCII, which had not yet gone public, the complaint said. The golfer allocated $US50,000, but Wool prodded her to invest more, 'reminding us all of the movie Boiler Room,' the complaint said. The golfer discovered her accounts held stocks she hadn't known about: instead of shares in BCII, she owned a stake in a company called Kerna Health, according to the complaint. Kerna Health was one of Dominari's largest long-term holdings at the end of 2024. 'Mr Wool denies these allegations and will vigorously defend this matter,' states the broker comment on Finra's site. On Wool's listing on the BrokerCheck directory, the matter is now listed as 'settled'. Tight-knit group Dominari's leadership team is a tight-knit group. Wool, who first joined the company's board in 2021, has described CEO Anthony Hayes as 'one of my best friends'. Soo Yu, Wool's wife, is special projects manager and sits on the board. The company lost a net $US37.6 million in the two years to the end of 2024. In the first three months of 2025, it lost an additional $US32.5 million. Loading Wool's pay totalled $US2.8 million in 2024. Yu, a naturalised US citizen who was born in South Korea and cultivates relationships with clients overseas, collected $US2.4 million. In 2023, she earned more than $US8 million, putting her in league with executives at much larger financial institutions. Shapeshifting The corporation that became Dominari started as Spherix Incorporated in 1967. In 2017, it began operating a small-molecule anticancer and antiviral therapeutics firm, and later changed its name to Aikido Pharma Inc. It rebranded once more to Dominari in 2022. In the same year, it agreed to buy a small broker-dealer called FieldPoint. Its Trump Tower lease agreements cost it about $US750,000 a year in rent, filings show. Its track record in IPOs has largely come from penny stocks. Jupiter, Florida-based Jupiter Neurosciences Inc and Hong Kong-based Wellchange Holdings Co are among the companies with shares trading below $US1 after sharp price drops on the public markets. Dominari also made small investments in private businesses that link back to President Donald Trump's orbit. They include a $US100,000 stake in Elon Musk's xAI; $US364,000 in crypto exchange Kraken, whose co-founder Jesse Powell donated $US1 million to Trump's inauguration fund. It held a roughly $US1 million stake in Unusual Machines, where Trump Jr is also an adviser, before the drone company went public in 2024, according to the most recent disclosures. Dominari is moving deeper into cryptocurrency, an industry the Trumps promote. The company started a Bitcoin stockpiling strategy in the same month that the Trumps joined. It held about $US2 million of a Bitcoin exchange-traded fund at the end of March. Loading In another crypto venture, Dominari created a data-centre division in February with the Trumps, and announced it was turning it into a Bitcoin miner in March. A publicly traded company, Hut 8, agreed to hand over almost all of its miners to Dominari's newly formed data-centre division. Hut 8 would get 80 per cent, and the Trumps and their partners would receive the remaining 20 per cent. The new company, American Bitcoin, plans to go public this year by combining with another firm, in another potential opportunity for its owners to profit. Asked about the expertise the Trumps would bring to Dominari, Wool responded that they're 'friends and advisers' and he didn't want to speak for them. Adam Pritchard, who teaches corporate and securities law at the University of Michigan, said one driver for the small bank's selection of the advisers is likely name recognition.
CBS News
14-05-2025
- Business
- CBS News
Donald Trump Jr.'s transformation into Washington power broker
When the crypto mining firm American Bitcoin announced plans to go public on the Nasdaq stock exchange this week, the company called it a "major milestone" for a key stakeholder, Dominari Holdings — a little-known investment house that recently added a very recognizable name to its advisory board: Donald Trump Jr. It was the latest maneuver in a series of high-stakes, and potentially lucrative business deals Trump Jr. and his younger brother Eric, also a Dominari adviser, stand to benefit from. Since his father won the 2024 election, Trump Jr. has joined at least eight corporate boards or advisory committees, adding political clout and his famous family brand to companies that sell handguns, make drones, and offer healthcare services online. During President Trump's second term, his son Donald Jr. has morphed from a lower profile presence in Washington to arguably the most visible heir to his father's political empire. The most overt symbol of that ascendence – and of the Trump family's unique blend of governing and deal-making, went public last month, with the announcement of a highly-exclusive private club, which is named "Executive Branch." At the coming-out event, the cocktails flowed and servers passed caviar to A-list guests that included Secretary of State Marco Rubio; Attorney General Pam Bondi; Paul Atkins, the chairman of the Securities and Exchange Commission and FCC chair Brendan Carr. The Capital's buzzy newsletters revealed the club's eye-popping club membership fee: $500,000. Private clubs have long been a fixture of official Washington, where lobbyists and well-heeled donors can mingle with members of Congress and high-ranking officials. But this venture launched by the president's oldest son is something new — and, according to critics, serves as the latest example of how the Trump family has turbo-charged Washington's pay-to-play culture. "I don't think there has ever been anything comparable to this use of the presidency to advance private business interests," said Joseph Briffaut, a law professor who specializes in government ethics at Columbia Law School. Critics fear a pay-to-play culture To government watchdogs, the members-only social club embodies what they say is an increasingly brazen mingling of private business interests and government policy. "It's unseemly and it undermines the public's faith that the government is operating in the public interest," said Brett Kappel, a veteran Washington, D.C., election lawyer. Melanie Sloan, a former federal prosecutor who has for years advocated for stronger ethics rules in the nation's capital, told CBS News she views the club as a blatant play to cash in with interest groups seeking access to the Trump administration. "This is literally members bringing money into the pockets of Donald Trump Jr, and his business partners," Sloan said. Trump Jr's allies disagree. They argue the extravagant membership fee actually cuts against the claim that it is a vehicle for influence peddling — because members are already so well connected. "If your goal was to let as many people in as possible, you'd have every lobbyist in DC join," said one source familiar with the concept behind the club, pointing out that members who could afford the sky-high admission fee would likely already be well known in Washington's power corridors. For his part, Trump Jr. disputes suggestions that he is cashing in on his father's name or testing any ethical boundaries. "I'm a private citizen who has been a businessman my entire life," he said in a statement provided to CBS News. "It's laughable that the left-wing media thinks that I should lock myself in a padded room and cease what I've been doing for over 25 years to earn a living and provide for my five children," Trump Jr. added. The White House calls Trump Jr's private sector dealings ethically sound, pointing out that President Trump's assets are held in a trust controlled by his family The "Executive Branch" club is only one of the ways Trump Jr. has raised his profile during his father's second term. The president's son has rapidly expanded the family's crypto profile and continued to pursue real estate investments. He has also been a front-facing leader of the MAGA empire, supplanting his sister Ivanka and brother-in-law, Jared Kushner, as the most high-profile — and politically astute — Trump scion in Washington. The "Trump bump" The family business is a global enterprise. Recently, Trump Jr. made a whirlwind tour of several foreign nations, including Serbia, Hungary and Bulgaria, where he looked in on real estate interests, delivered lucrative speeches and met with government leaders, according to The New York Times. At home, Trump Jr.'s move to join a spree of corporate boards in the role of adviser or board member traces in part to his relationship with Omeed Malik, the financier and mega Trump donor who is also Trump Jr.'s co-founder in the DC social club. Just days after the election, Malik brought on Trump Jr. as a partner in his venture capital firm, 1789 Capital, which says on its website that it invests in conservative companies and eschews "woke capitalism" and other left-wing causes, a deal a knowledgeable source said was in the works before the election. Trump Jr. soon joined the boards of arms retailer GrabAGun as well as the online health care company BlinkRX, both 1789 Capital properties. It is not hard to see the impact when a company adds Trump Jr. to its board. When Dominari Holdings inc., a wealth management and banking services company, announced that it was bringing on both of the president's sons, its stock price shot up 83% to a record high, eventually settling down to 30%above where it was before Trump Jr. joined. Shortly thereafter, Dominari's CEO announced that the company was planning investments in AI and data centers, growth industries where the Trump administration has been massively rolling back regulations. In a company press release, CEO Kyle Wood he cited Trump Jr's and Eric Trump's "strategic insight" in both of those sectors. And this week, the Bitcoin mining company owned partly by Trump sons Donald Jr. and Eric engineered a listing on the NASDAQ after merging with a smaller, publicly traded mining firm called Gryphon Digital Mining Inc. Dominari Holdings is effectively acting as the banker for the deal and has been reaching out to potential investors. In another example of the so-called "Trump bump," the stock price of Unusual Machines, a Florida-based drone manufacturer, nearly doubled when the news hit that Trump Jr. was joining the board. Unusual Machines, which manufactures its unmanned aerial vehicles and components in the US, is aiming to reduce American dependence on Chinese drones. But for the time being the company is reliant on Chinese parts, which means that the Trump administration's yo-yoing tariffs on China could hurt the company's bottom line. CEO Allan Evans has said he would not ask Trump Jr. to intervene with the federal government on the company's behalf for relief. "I would never ask him to do anything or facilitate anything like that," Evans told the Wall Street Journal. Trump Jr. and his defenders clap back at critics who suggest his moves to join board seats and champion business interests carry the echoes of past ventures by presidential relatives like Billy Carter, Neil Bush or Hunter Biden. They call him a skilled entrepreneur with a long record of business success who has capitalized on his position by making shrewd business decisions, cultivating lucrative connections among tech and finance leaders, all while building up a powerful political operation in Washington. The Hunter Biden comparisons, in particular, have drawn a sharp response: "He became a 'businessman' after his dad got elected," Trump Jr. said in a social media post. "I joined a Venture Capital Firm that invests in private American companies - Nothing to do with the government." MAGA power broker "Don Jr. was an accomplished businessman long before his father got into politics and just continues to grow," said Sean Spicer, who served the president as press secretary in his first term and now hosts the Sean Spicer podcast. Today, Spicer says Trump Jr. is the man to see. Spicer, who worked closely with the president's son during the first term, says has seen the evolution up close. "If the phone rings and it's Don Jr., you better pick it up on the first ring," Spicer said. During the 2020 campaign Trump Jr. emerged as a potent asset for his father, stumping on the trail and fully embodying the MAGA brand. He flung "red meat" to the rapturous crowds at Trump rallies and showed an instinct for the jugular that reminded observers of Trump senior. A big part of his success, his friends say, is an ability to blend with the grassroots MAGA world. "Don Jr. isn't just a billionaire's son, he's one of us," said Andrew Kolvet, spokesman for Turning Point USA, the pre-eminent MAGA aligned youth organization and an associate of Trump Jr. Trump Jr.'s inside and outside game makes him a unique player in Trump's Washington, his allies say -- someone with unparalleled clout within the administration who is also able to operate freely in the private sector. He has forged close ties with powerful tech titans like Elon Musk and David O. Sacks, the angel investor who was a key figure in bringing a powerful and wealthy contingent of Silicon Valley over to Trump. Sacks is currently serving as the White House Czar for both Crypto and AI. Last month he became Member #1 of the Executive Branch club.
Telegraph
17-04-2025
- Business
- Telegraph
New York companies enjoy ‘unusual' share surge before Trump's sons join
Two little-known Wall Street companies experienced an 'unusual' stock price surge before an announcement naming Donald Trump's sons to the board, raising fears over potential insider trading. Shares in drone maker Unusual Machines, which listed on the Nasdaq last year, surged by more than 220pc in the four weeks leading up to the recruitment of Donald Trump Jr on Nov 27. Meanwhile, shares of fintech group Dominari Holdings, which is headquartered in New York's Trump Tower, were catapulted 580pc higher in the six weeks before bosses announced Donald Trump Jr had joined its advisory board. Eric Trump, another of the US president's sons, joined at the same time. Jeremy Summers, head of business crime at Osborne Clarke, suggested the trading patterns had 'the potential to involve insider dealing'. He said: 'The authorities will need to look closely at trading patterns, messaging platforms and the timing of relevant announcements, but if they all align one would often expect enforcement action to follow. 'A question that may, however, remain is, how much has the SEC been neutered by the present administration?' Average daily trading volumes in Unusual Machines rose to 290,000 shares per day in the month leading up to Donald Trump Jr's appointment – compared to just 93,000 shares between March and October 2024. Dominari, which has a market value of about $60m (£45m), saw a steeper increase from 11,700 between March and December 2024 to 1.2m. The increase was first reported by the Financial Times. Adam Pritchard, a University of Michigan law professor, told it that the stock movements were 'clearly unusual'. The Trump brothers were each given 966,000 shares in Dominari, regulatory filings show, which are worth 6.7pc of the company, prior to the announcement of their roles. Unusual Machines, which has a market value of about $90m, said in November that Donald Trump Jr held 200,000 shares issued under 'a restricted stock unit agreement and advisory agreement', in addition to 131,000 shares he bought. Unusual Machines told the Financial Times that knowledge of Donald Trump Jr's planned involvement was limited to three senior officers, as well as its board and counsel. It said it had 'no reason to believe that any of these people breached any duty, whether legal or fiduciary', and the company has 'no knowledge as to why any investor bought [its] stock during this period'. Unusual Machines and Dominari did not respond to requests for comment. It comes a week after Democratic Party leaders demanded an investigation into whether the US president had engaged in insider trading in the hours before he announced a reversal of his tariff policy. Mr Trump had written on Truth Social that it was a 'great time to buy' while Nasdaq call volume, where traders buy the right to purchase a share at a certain price before a certain date, spiked in the hour before the president announced his 90-day suspension of most of his tariffs. Adam Schiff, a Democratic senator in California, said: 'I'm writing to the White House to demand [to know] who knew in advance that the president was going to, once again, flip-flop on tariffs. And are people cashing in? 'There is just all too much opportunity for people in the White House and the administration to be insider trading.' Elizabeth Warren, a former candidate for the Democratic presidential nomination and a Massachusetts senator, added: 'Right before Donald Trump declared that some of his tariffs were off again, he sent out a message to his billionaire buddies. 'Was that market manipulation? Was that corruption in plain sight? We need an independent investigation.' The White House criticised the claims, claiming that Democrats were 'playing partisan games'. 'It is the responsibility of the president of the United States to reassure the markets and Americans about their economic security in the face of non-stop media fear-mongering,' a spokesman said last week. 'Democrats railed against China's cheating for decades, and now they're playing partisan games instead of celebrating President Trump's decisive action yesterday to finally corner China.'
