Trump-linked tokens and data-center stocks fall after midterms

Official Trump fell nearly 16.1% over 24 hours after Democrats won the US midterms, according to CoinGecko. Trump Media & Technology Group shares dropped 24.54%, while leveraged ETF DJTU lost almost 50%. The report did not provide a matching timestamp for the equity and ETF moves, limiting direct comparison with the token data.

What changed for Trump-linked assets?

WLFI, the token issued by World Liberty Financial, declined around 3% to $0.04706 at about 11 a.m. IST on Thursday. World Liberty Financial was co-founded by Donald Trump and is largely controlled by the Trump family.

CoinGecko defines Trump-affiliated coins as those officially launched, endorsed, or held by Trump or his immediate family. It lists Donald Trump as World Liberty Financial’s “Chief Crypto Advocate,” his sons Eric and Donald Jr. as “Web3 Ambassadors,” and Barron Trump as “DeFi Visionary.”

Bloomberg reported that Noelle Acheson, author of the Crypto is Macro Now newsletter, said the decline reflected concern about the political standing of these businesses and the possibility of increased scrutiny or investigations. The source identified no new investigation, subpoena, or enforcement action, so it did not establish that any had begun.

The immediate change was a political risk discount, not a new enforcement order.

What changed for data-center stocks?

The election outcome also raised questions about Texas data-center development. Several Bitcoin mining companies have been converting existing facilities into AI computing centers, making their valuations increasingly dependent on demand for capacity. Tighter construction restrictions could delay projects, raise financing costs, and disrupt a pipeline already facing significant funding requirements.

The equity reaction was broad:

• Galaxy Digital fell nearly 17%.
• Hut 8 declined 23%.
• MARA Holdings lost around 4%.
• Cipher Digital, Core Scientific and IREN each recorded declines of at least 10%.

Bloomberg reported that Matthew Hougan, chief investment officer at Bitwise Asset Management, framed the financing risk this way:

“Any slowdown in the buildout could put significant stress on AI-linked neoclouds, as financing costs will mount even as revenues are pushed back. It’s like when someone is building an apartment building and runs into construction delays; the financing costs continue while the revenues never appear.”

The warning concerns the gap between construction and revenue. Financing costs continue while income from the facilities is deferred.

A slower buildout would raise financing costs before it produced additional revenue.

How much does Texas matter?

SemiAnalysis estimates that Texas accounts for nearly 30% of US data-center capacity expected to become operational in 2028, making it the largest contributor among US states. Texas alone therefore accounts for almost three in every 10 US data-center capacity units projected to come online that year.

Gina Hinojosa’s election as Texas governor added to those concerns because her campaign advocated a temporary halt to unrestricted data-center development. Market participants believe the leadership change could lead to additional regulations, potentially favoring established operators with stronger compliance records.

No implementing text, enforcement timetable, or definition of unrestricted development appeared in the report. The proposal therefore remained a policy signal, not an operating restriction.

Texas policy now sits on the sector’s operating timeline, although the campaign proposal does not yet amount to a restriction.

Could tighter rules benefit existing miners?

Adam McCarthy, head of research at trading firm LO, said the market reaction could be excessive. He suggested that infrastructure owned by Bitcoin mining companies could become more valuable if tighter regulations slow new AI data-center development, a view shared by other market participants.

The mechanism is relative: incumbents might gain value even as new AI capacity comes online more slowly. The source did not quantify that benefit, identify which operators hold stronger compliance records, or establish that regulation would reduce total capacity.

New barriers may protect incumbents without accelerating the AI buildout.

What remains unresolved?

The report also cited Bitcoin near $78,600 and Ethereum at $2,300 as the US midterm result put crypto regulation in focus. It did not identify a federal response, a Texas rulemaking date, company financing schedules, or a timetable for scrutiny.

Nor did the market move demonstrate that politics alone caused the declines or that regulators will take enforcement action. The report offers no enforcement record to support a stronger claim.

Any enforcement window remains unspecified. The next material checkpoint is formal Texas action on data-center construction; until a rule or timetable emerges, financing costs continue while revenue timing and the competitive balance remain uncertain.