HomeMain SliderShri Thanedar’s Crypto Investment Fills Re-Election Campaign Coffers

Shri Thanedar’s Crypto Investment Fills Re-Election Campaign Coffers

Shri Thanedar’s Crypto Investment Fills Re-Election Campaign Coffers

India-West News Desk

DETROIT, MI – Michigan Congressman Shri Thanedar’s bold move to invest campaign funds in cryptocurrency has proven lucrative, with promising returns thus far. The Detroit Democrat, known for self-funding his campaigns as a millionaire businessman, redirected $3.7 million from his campaign this year to invest in the Grayscale Bitcoin ETF, a cryptocurrency exchange-traded fund.

Within just three months, Thanedar’s investment yielded $1.3 million in profit and interest income, marking a substantial 35% return on investment for his campaign committee, The Detroit News Reported. The campaign strategically made five purchases of GBTC between January and March, coinciding with an impressive 82% growth in the fund’s value during that period, the report said.

While investing campaign funds is permitted under federal campaign election regulations, it’s relatively uncommon due to associated financial risks and costs. However, Thanedar plans to cash out when necessary for his Democratic primary campaign, commencing in June, enabling him to bypass extensive fundraising efforts.

Thanedar told The Detroit News he was inspired by the investment strategies of fellow candidates, such as the Senate campaign of Congressman Adam Smith from California. Despite the potential for significant gains, many candidates refrain from investment ventures due to the risk of losing donors’ contributions, particularly with volatile assets like cryptocurrency.

For self-funding candidates like Thanedar, the calculus differs, the paper opined, given that a substantial portion of the investment stems from personal funds. Having loaned his campaign over $3.3 million since December, Thanedar closed the quarter with cash reserves exceeding $5 million.

In the upcoming primary race, Thanedar faces challenges from former state Senator Adam Hollier and Detroit City Councilwoman Mary Waters, both hailing from Detroit. Notably, in the previous election, Thanedar allocated $6 million for his initial U.S. House campaign in Michigan’s 13th District in 2022.

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  • Will be a challenge for him to win in Michigan considering him withdrawing from the progressive caucus.

    April 25, 2024

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