Cryptocurrencies: Crypto-billionaires gain $38 billion after Bitcoin surge

The cryptocurrency industry is riding high on the wave of Donald Trump's victory, reaching record highs, and crypto-billionaires are seeing their fortunes skyrocket.

Following a record-breaking surge that saw Bitcoin surpass $90,000 for the first time and the total value of all digital assets exceed $3.2 trillion, crypto-billionaires have experienced a massive increase in their net worth. Forbes estimates that the top 11 crypto-billionaires, whose holdings consist primarily of tokens and equities, collectively added $38 billion to their fortunes in 2024. Of this, approximately $24 billion—63% of the total increase—came since September 1st, reflecting the sector's optimism surrounding Donald Trump's eventual win in the November 5th US presidential election.

In terms of percentage gains, the biggest winners were executives of publicly traded companies whose shares trade on Bitcoin itself. The biggest percentage gainer by far is Bitcoin enthusiast and MicroStrategy CEO Michael Saylor. His company's stock, which holds the world's largest Bitcoin reserve valued at $25.6 billion, is up 464% year-to-date. For comparison, Bitcoin itself is up 110% over the same period. Saylor's net worth, largely composed of Bitcoin and his stake in the company, increased by 291% to $8.8 billion. Next is Galaxy Digital CEO Mike Novogratz, who benefited from a 150% rise in his company's stock price year-to-date, boosting his net worth by 123% from $3.2 billion to $5.9 billion.

Coinbase CEO Brian Armstrong also saw a massive increase in his fortune, growing by 80% from $7.6 billion at the start of the year to $13.8 billion, making him the second wealthiest figure in the crypto industry. The bulk of Armstrong's wealth increase occurred over the past two months, capitalizing on Coinbase's 74% stock surge to add an extra $5.7 billion to his fortune.

The biggest gainer in dollar terms is Changpeng Zhao, the former Binance CEO and convicted felon who recently served four months in federal prison as part of a plea deal with the US Department of Justice, pleading guilty to money laundering and sanctions violations. His wealth consists of a $33 billion stake in Binance, although he no longer holds an operational role at the company. He also holds a stockpile of 94 million BNB tokens, discovered by Forbes in a 2023 investigation. Including Zhao's stake in BNB, a digital asset created by Binance that's used on its blockchain and allows clients to get discounts on transactions, his net worth rose from $47.3 billion at the start of the year to $63.1 billion currently. In terms of percentage increases, however, Zhao ranks lower (see below), with a gain of only 33%. BNB itself is up only 89% in 2024.

The only two crypto-billionaires who haven't benefited from this bullish climate are Ripple co-founders Chris Larsen and Jed McCaleb. Larsen's net worth, half of which is tied to XRP tokens, a digital asset used by the XRP Ledger to facilitate cheap global payments, remained flat throughout the year (approximately $3.3 billion). McCaleb's fortune, which includes 1 billion tokens from a similar blockchain called Stellar (XLM), also remained relatively stagnant (at $2.9 billion). XRP is up less than 1% this year, while XLM is down 11%.

In March, Forbes identified XRP Ledger and the Stellar network as two major billion-dollar crypto-zombies, as despite their respective market caps of $38 billion and $3.9 billion, they have little utility and primarily serve as vehicles for trading and speculation.

Crypto-Billionaire Fortunes on the Rise

Name	Title	Net Worth (in billions of USD)	Year-to-Date Change (%)
Michael Saylor	Executive Chairman, MicroStrategy	8.8	291
Mike Novogratz	CEO, Galaxy	5.8	123
Tim Draper	Founder, Draper Assoc	2.6	98
Brian Armstrong	CEO, Coinbase	13.8	80
Tyler Winklevoss	CEO, Gemini	3.1	78
Cameron Winklevoss	President, Gemini	3.1	78
Matthew Roszak	Chairman and Co-Founder, Bloq	2.4	61
Fred Ehrsam	Co-Founder, Paradigm	3.6	58
Changpeng Zhao	Founder, Binance	63.1	33
Chris Larsen	Executive Chairman, Ripple Labs	3.3	0
Jed McCaleb	Co-Founder, Stellar	2.9	0
TOTAL		112	51

 

FAQs

• Q: What is the main reason for the significant increase in the net worth of crypto-billionaires in 2024?
• A: The primary driver is the substantial surge in Bitcoin's price, exceeding $90,000 for the first time, and the overall growth of the cryptocurrency market, surpassing $3.2 trillion in total value. This increase is further fueled by optimism surrounding Donald Trump's presidential election win.
• Q: Which crypto-billionaire experienced the largest percentage increase in net worth?
• A: Michael Saylor, CEO of MicroStrategy, saw the most significant percentage increase (291%), primarily due to the massive rise in MicroStrategy's stock price, which holds a large Bitcoin reserve.
• Q: Who is the wealthiest crypto-billionaire according to the article?
• A: Changpeng Zhao, the founder of Binance, holds the top spot with a net worth of $63.1 billion, despite his recent legal troubles and departure from operational roles at Binance.
• Q: Did all crypto-billionaires benefit equally from the market surge?
• A: No. While many saw substantial gains, Chris Larsen and Jed McCaleb, co-founders of Ripple and Stellar respectively, experienced little to no change in their net worth due to the relatively flat or declining performance of XRP and XLM tokens.
• Q: What is the significance of MicroStrategy's Bitcoin holdings in relation to Saylor's wealth?
• A: MicroStrategy's massive Bitcoin reserve is the cornerstone of Michael Saylor's immense wealth. The increase in Bitcoin's value directly translates to a significant increase in the value of MicroStrategy's holdings and consequently, Saylor's net worth.
• Q: What are XRP and XLM, and why did they underperform compared to Bitcoin?
• A: XRP is a token used by XRP Ledger for facilitating cheap global payments, and XLM is a similar token used by the Stellar blockchain. Their underperformance compared to Bitcoin is attributed to their limited utility and classification as "crypto-zombies" – having large market caps but limited practical applications.
• Q: What is the overall trend in the net worth of the top 11 crypto-billionaires listed?
• A: Collectively, their net worth increased by $38 billion in 2024, representing a 51% increase overall. This highlights the substantial impact of the cryptocurrency market's growth on their fortunes.
• Q: What role did the US Presidential election play in the cryptocurrency market's performance?
• A: The article suggests that the market's positive reaction to the anticipated win of Donald Trump contributed significantly to the increase in value, especially the gains observed after September 1st.
• Q: What are the potential ethical concerns raised by this article?
• A: The inclusion of Changpeng Zhao, a convicted felon, among the wealthiest crypto-billionaires raises ethical questions regarding the industry's regulatory oversight and the potential for illicit activities within the cryptocurrency space. Additionally, the extreme wealth disparity highlighted in the article could spark debate around wealth distribution and the social impact of cryptocurrency.

• Q: How does the article explain the significant difference in percentage gains between Bitcoin and some companies' stock prices (like MicroStrategy)?
• A: The article highlights that companies like MicroStrategy have made significant bets on Bitcoin. Their stock price is directly tied to Bitcoin's performance, but amplified by market sentiment and speculation around the company's strategy. Therefore, while Bitcoin might have seen a 110% increase, MicroStrategy's stock, being leveraged to Bitcoin's value, experienced a much higher percentage gain.
• Q: What is the significance of the "crypto-zombie" classification given to XRP Ledger and Stellar?
• A: The term "crypto-zombie" suggests that these blockchain networks, despite having substantial market capitalization, lack significant real-world utility or adoption. They exist primarily for speculative trading rather than solving practical problems or providing valuable services. This explains their relatively stagnant performance compared to Bitcoin.
• Q: How does the article contrast the financial performance of publicly traded crypto companies versus the performance of cryptocurrencies themselves?
• A: The article shows that publicly traded companies involved in the crypto space (like Coinbase and MicroStrategy) sometimes saw even greater percentage increases in their stock prices than Bitcoin itself. This highlights the impact of market speculation and investor confidence in specific companies, independent of the underlying cryptocurrency's price.
• Q: What is the implication of Changpeng Zhao's legal troubles on the cryptocurrency market's overall perception?
• A: While the article focuses on the financial aspect of Zhao's situation, his conviction raises concerns about regulatory oversight and the potential for illegal activity within the cryptocurrency industry. This could negatively impact investor confidence and contribute to regulatory scrutiny in the future.
• Q: Can we extrapolate the trends described in the article to predict future performance of cryptocurrencies and related companies?
• A: No, it's impossible to reliably predict future performance based solely on past data. The cryptocurrency market is highly volatile and influenced by many factors, including regulatory changes, technological advancements, and overall market sentiment. The article presents a snapshot of a specific period, not a forecast.
• Q: What are some of the limitations of Forbes' methodology in assessing the net worth of crypto-billionaires?
• A: The article doesn't explicitly detail Forbes' methodology, but it's implied that valuing crypto holdings can be challenging due to their volatility and the lack of a standardized valuation method. The figures are estimates based on available information, and actual net worth could differ significantly.
• Q: What potential economic or societal implications are there regarding the concentration of wealth within the cryptocurrency industry?
• A: The extreme concentration of wealth shown in the article could lead to increased economic inequality and raise questions about fair distribution of resources. It also highlights potential risks associated with speculative bubbles and the need for responsible investment strategies.
• Q: How might regulatory changes impact the future wealth of crypto-billionaires?
• A: Increased regulatory scrutiny or stricter regulations could significantly impact the value of cryptocurrencies and related businesses. This could potentially decrease the wealth of crypto-billionaires, or shift wealth toward those who are better positioned to navigate regulatory landscapes.
• Q: What is the role of speculation and market sentiment in driving the price of cryptocurrencies and related assets?
• A: The article strongly suggests that speculation and market sentiment are major factors. The rapid increase in value is not solely based on fundamental utility or technological advancements but also on investor enthusiasm, fear of missing out (FOMO), and various market-driven narratives.