Helped Trump’s sons earn over $500 million—get to know “Trump’s banker”

Since Trump returned to the White House, an investment banker named Kyle Wool has quickly become the key to the First Family's wealth. Through collaboration with Trump's two sons, Wool's investment bank Dominari Holdings has helped them earn over $500 million in small-cap stocks and cryptocurrencies.

According to Bloomberg, since the 2024 election, Wool has arranged several investment transactions involving the Trump family. The most notable is Eric Trump’s stake in the Bitcoin mining company American Bitcoin, which was valued at nearly $500 million as of October 9th.

The core model of these transactions is using the Trump family's reputation to drive stock prices sharply higher. Take Unusual Machines as an example: after announcing Donald Trump Jr. as an advisor, the share price of this loss-making drone company in Orlando tripled within three days, bringing $4.4 million in paper gains to the elder Trump son.

Reports indicate that these deals highlight the Trump family's more active business pursuits during the president’s second term. However, Wool's partnership with the Trump family has raised concerns over conflicts of interest. As president, Trump’s policy decisions could directly impact the value of these companies, while his sons hold significant economic interests within them.

The Rise of a Small-Cap Dealer

Kyle Wool previously worked in wealth management at Oppenheimer & Co. and Morgan Stanley.

In 2022, he became president of the small brokerage Revere Securities LLC, after which Wool repackaged the loss-making, frequently rebranded company as an investment bank and renamed it Dominari Holdings.

Wool also moved the company headquarters to the 22nd and 23rd floors of Trump Tower, just two floors away from the Trump Organization headquarters. He takes pride in his close relationship with the Trump family.

Wool spent years cultivating his relationship with the Trump family. He became a member of Trump’s club in Jupiter, Florida, with an admission fee as high as $500,000, and organized events at Trump-owned golf courses. These investments eventually paid off handsomely.

In February 2024, Dominari announced Donald Jr. and Eric Trump would serve as company advisors and investors, holding larger stakes than any external investor.

Dominari stated in a notice that the two brothers would provide advice on AI and data centers, though they have no evident experience in those fields. Following the announcement, Dominari’s stock price soared.

Dominari specializes in financing small-cap stocks — companies usually valued under $250 million, with highly volatile share prices. As microcap investment expert Stephen Kann said:

"A defining trait of microcap stocks is they are always striving for attention. The Trump association is like a giant spotlight."

Take Unusual Machines for instance: this drone company initially listed at $4 a share, but a tepid investor response drove prices below $2, with the company burning through cash. Wool recommended the stock to Donald Jr., who invested $100,000 to buy shares and warrants, and agreed to serve as an advisor.

The announcement of Donald Jr.’s involvement sent the share price soaring to over $20, with his investment ballooning by up to 30 times. Company CEO Allan Evans said that Donald Jr.'s biggest contribution is the public endorsement, which gave the company easier access to potential business partners and raised over $80 million this year.

Huge Gains in Cryptocurrency

The Trump sons (the elder and the younger) reaped their largest cryptocurrency returns from American Bitcoin Corp.

Earlier this year, Donald Jr. and Eric Trump, along with Wool and Dominari, acquired a 20% stake in a Bitcoin mining company with facilities in Texas, New York, and Alberta, Canada.

The company then went public via a merger with a small-cap firm. At the Bitcoin conference in Las Vegas in May, the Trump sons endorsed the company, with Eric stating, "We have a president who loves and 100% supports this industry."

This deal brought Dominari holdings worth over $150 million as of October 9th, while Eric’s stake was worth close to $450 million.

Notably, public filings showed that Eric Trump did not contribute cash or other assets to the company yet received such a massive equity value. Eric Trump said, "Very proud of American Bitcoin, it’s a tremendous success."

Emerging Conflict of Interest Risks

These investments have triggered serious concerns about conflicts of interest. While there’s no evidence the Trump sons’ investments have influenced policy decisions, all related companies could gain or lose value due to government action.

In the drone sector, the Trump administration has worked to boost domestic production. In June, Trump signed an executive order to expedite long-awaited flight regulations; in July, the Pentagon issued new guidance to accelerate US-made drone purchases for the military.

In cryptocurrency, in July, the White House recommended that the IRS consider changes to its long-standing tax guidance on crypto mining, which would benefit companies like American Bitcoin.

Meanwhile, the company’s Bitcoin mining rigs come from Chinese manufacturers; Republican members of Congress recently pushed the Treasury Department to review such imports for national security reasons.

In August, a new joint project was launched: blank-check company New America Acquisition I Corp., which will acquire US manufacturers after raising funds on the stock market. The Trump brothers, as part-time advisors, could see their stakes worth up to $50 million when the company trades publicly.

The company initially stated in its securities filing that it would seek "acquisition targets benefitting from federal or state incentives," but deleted the statement after an Associated Press inquiry.

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