Martin Shkreli’s career story features a tragicomedy plot, flowing in a movie-like trend. Indeed, it’s a movie I’ll pay to watch, sitting in the front row! The Albanian-American crypto investor fought against all odds in his youth, securing a place among the wealthiest men of his age with a net worth formerly $70 million. However, his involvement in several ‘dirty jobs’, greed, and an incessant urge for money-making saw him lose everything he worked so hard to attain, driving back to $0 worth.
Martin was what many would call a jack-of-all-trades, engaging in numerous sectors, including entertainment, pharmaceuticals, and, of course, cryptocurrencies. He rose to the limelight after establishing his hedge fund, MSMB Capital Management, and has remained a hot topic ever since. Today, Martin Shkreli is known as an entrepreneur, biotech investor, crypto guru, hedge fund manager, and a convicted felon. Let’s find out how Martin Shkreli made his money and what his net worth was before losing it all!
Who is Martin Shkreli?
Born in Brooklyn, New York City, on March 17, 1983, Martin Shkreli (@MartinShkreli) is an American investor and businessman. He was born into a working-class family, years after his parents migrated to the US to work as janitors. Shkreli attended Hunter College High School but dropped out before his senior year. However, he completed his diploma at City-As-School High School—an alternative learning high school. Martin Shkreli also studied at Baruch College, where he graduated with a bachelor’s degree in business administration in 2004.
Martin Shkreli’s ‘real life’ began rather early, starting with his time as an intern at Cramer Berkowitz. He was just 17 years old at that time. Shkreli caught everyone’s attention after suggesting that Cramer should short-sell the stock of Regeneron, a company testing a weight loss drug. The firm heeded and gained massive profits after Regeneron’s prices nosedived as Shkreli predicted.
After four years at Cramer’s, during which he gained all necessary knowledge as both an intern and an associate, Martin Shkreli began a new career path. He worked as a financial analyst for Intrepid Capital Management and UBS Wealth Management. These events paved the way for Shkreli in the hedge fund sector, enabling the establishment of his first hedge fund, Elea Capital Management. Elea shut down, however, when Shkreli didn’t have the money to repay the Lehman brothers after a failed stock prediction.
What is Martin Shkreli’s Net Worth in 2024?
Shkreli’s net worth suffered a deafening blow after he was sentenced to a 7-year jail term in 2017 for several cases of securities fraud. Prior to this, the American had amassed a net value of around $70 million. The majority of this wealth came from his stakes in Turing Pharmaceuticals, a company he founded in 2015.
According to Celebrity Net Worth, Martin Shkreli’s net worth is presently at $0, following his conviction and sentence, as well as the penalties placed on him. However, other sources claim that he is still worth around $25-$27 million, thanks to his alleged ownership of shadow companies that weren’t confiscated during his arrest.
How Did Martin Shkreli Make His Money?
Martin’s career journey features lots of checkpoints, especially those that place him on the wrong side of the law. He was interested in startups, hedge funds, crypto, and collectibles, including the Wu-Tang Clan. These involvements braced Martin Shkreli’s net worth until 2017 when he faced the wrath of the law. Let’s view a breakdown of his most important career businesses from top to bottom.
MSMB Capital Management
In September 2009, Martin Shkreli and Marek Biestek formed MSMB, receiving its name from the initials of the two partners. MSMB short-sold biotech companies then revealed these companies’ flaws on stock trading chat rooms. As he did with Elea Capital, Shkreli made another bad bet under the MSMB umbrella.
Shkreli and Biestek sold short $32 million shares of Orexigen Therapeutics stock at $2.50/share after its price fell from $9.09. The trade was taken on an account they held with Merrill Lynch, and it recorded a loss after the price rebounded against Shkreli’s predictions. Merrill Lynch lost over $7 million on the trade as MSMB could not cover the position. Due to this, MSMB went insolvent and was virtually wiped out.
While at MSMB, Shkreli also created the Retrophin company in 2011, to develop cures for rare diseases. However, his stay in the company was short-lived, as he was removed in 2014. He also faced charges over alleged harassment of an employee, breach of loyalty, and violation of securities rules, including several stock trading irregularities.
Turing Pharmaceuticals
Martin Shkreli founded Turing Pharmaceuticals after his exit from Retrophin, in February 2015. The company acquired the lifesaving HIV drug, Daraprim, from Impax Laboratories. The purchase, which seemed like a well-intentioned move by Shkreli, was indeed another of his dubious actions aimed at accumulating wealth.
In September 2015, Turing Pharmaceuticals raised the price per pill of Daraprim from $13.50 to $750 overnight! The price hike raised questions from individuals, hospitals, and several agencies alike, demanding its immediate reduction. Martin Shkreli shrugged off all pleas; however, he maintained that the new price was just, given the demand for the product. The sale of Daraprim increased Shkreli’s income by over 5,000%, contributing largely to his initial $70 million net worth.
Martin Shkreli’s Views on Crypto
Crypto trading was always written in Martin’s good books. He publicly showed interest in crypto and held a significant amount of Bitcoin as well. As part of his medical-crypto merger, Martin Shkreli founded DrugLike. The company helps to democratize drug discovery using blockchain technology and a new coin: Martin Shkreli Inu (MSI). However, this invention has added to Shkreli’s load of legal controversies, as numerous agencies are already investigating and scrutinizing the project.
