TL;DR
- ALT5 Sigma Corporation is raising $1.5 billion to build a treasury strategy centered on WLFI tokens, acquiring about 7.5% of the total supply.
- Eric Trump will join ALT5’s board, alongside other executives from World Liberty Financial (WLFI).
- Proceeds will support token acquisition, debt repayment, litigation settlement, and ongoing business needs, marking a notable move in public companies adopting crypto assets.
ALT5 Sigma Corporation, a Nasdaq-listed fintech firm focused on blockchain technology, is moving forward with a significant $1.5 billion capital raise to support its new treasury strategy using WLFI tokens. This initiative will result in ALT5 holding approximately 7.5% of the WLFI token supply, a strategic step that integrates the Trump-backed World Liberty Financial’s native crypto asset into ALT5’s corporate balance sheet.
The funding round includes a registered direct offering and a private placement expected to close around August 12. ALT5 will issue up to 200 million shares at $7.50 each to complete the raise. World Liberty Financial is the lead investor, contributing WLFI tokens in the private placement. Other large institutional investors and prominent crypto venture capital firms are also participating, although their identities remain confidential.
Key WLFI Executives Join ALT5 Board
As part of the agreement, WLFI CEO and co-founder Zach Witkoff will take on the role of ALT5’s board chairman. Eric Trump is set to join as a director, while WLFI co-founder Zak Folkman will participate as a board observer. Matt Morgan will be appointed as chief investment officer, strengthening the company’s leadership with experienced crypto and finance professionals.
ALT5 plans to use the proceeds not only for acquiring WLFI tokens but also to fund its crypto treasury operations, repay existing debts, settle litigation, and maintain working capital. This move makes ALT5 one of the first publicly traded companies to adopt a decentralized finance (DeFi) token as a core treasury asset.
WLFI tokens are not yet widely tradable but are scheduled for unlocking soon after a community vote. This fundraising positions ALT5 and WLFI to capitalize on growing institutional interest in incorporating diverse crypto assets like Bitcoin and Ethereum into corporate treasuries, expanding the presence of decentralized finance in traditional markets.
By embracing WLFI as a reserve asset, ALT5 Sigma highlights the evolving trend of blockchain integration in financial services, signaling a significant shift toward more public companies holding digital tokens as part of their strategic assets for future innovation and sustainable value creation worldwide across multiple sectors and industries with increasing adoption rates.
