Over the course of this year, the Trump administration has built a portfolio of strategic corporate holdings, with direct ownership stakes in several major companies.
The strategy appears to largely revolve around securing critical supply chains in semiconductors, rare earths, lithium, and steel.
More precisely, Washington now owns 10% equity stake in Intel (NASDAQ: INTC), 15% in MP Materials (NYSE: MP), 10% in Lithium Americas (NYSE: LAC), and 10% in Trilogy Metals (NASDAQ: TMQ).
In addition, the government owns a “golden share” in the U.S. Steel Corporation, now a subsidiary of Nippon Steel (TYO: 5401), and is considering acquiring positions in major defense contractors.
Trump’s strategic portfolio
The 10% equity stake in Intel comes from the CHIPS Act deal completed on August 22, which also grants Trump a five-year warrant to buy an additional 5% at $20 per share if Intel loses majority control of its foundry business. Since then, INTC stock is up more than 50%.
On the other hand, the 15% stake in MP Materials is the result of a Department of Defense partnership in July this year, which has allowed MP shares to soar over 60%.
Similarly, Lithium Americas is tied to a $2.26 billion federal loan restructuring for its Thacker Pass mine in Nevada, likely the largest lithium operation by 2028. The company’s stock has also posted strong gains following the announcement, up 20% since October 1.
The ownership stake in Trilogy Metals was backed by a $35.6 million investment to advance exploration in Alaska’s Ambler Mining District, with warrants for another 7.5%. Continuing the pattern, TMC stock skyrocketed over 215% in after-hours trading in the wake of the October 6 news.
Finally, the Trump administration owns a “golden share” in the U.S. Steel Corporation, which grants veto rights over strategic decisions, secured amid Nippon Steel’s takeover in June this year. This has also ensured U.S. control over headquarters location, production facilities, and domestic operations.
Featured image via Shutterstock
Source: https://finbold.com/the-trump-administration-just-backed-these-4-stocks/
