Original Title: "From Hugging Trump's Thigh to Switching Hands, How Do ALT5 and WLFI Play the Capital Game?"
Original Author: Deng Tong, Jinse Finance
On August 11, 2025, ALT5 Sigma Corporation announced a total of $1.5 billion in registered direct offerings and simultaneous private placements to initiate the treasury strategy of World Liberty Financial (WLFI). This is the second company to announce the launch of the WLFI treasury strategy after BigStrategy Inc.
What business does ALT5 Sigma Corporation primarily engage in? What are the benefits of the "strong alliance" between ALT5 Sigma Corporation and WLFI? Who else has announced the WLFI treasury reserve plan?
I. What Business Does ALT5 Sigma Corporation Primarily Engage In?
ALT5 Sigma Corporation is a fintech company that provides next-generation technology based on blockchain for the tokenization, trading, clearing and settlement, payment, and secure custody of digital assets.
ALT5 Sigma, Inc. (a wholly-owned subsidiary of ALT5 Sigma Corporation) was established in 2018. ALT5 Sigma, Inc. offers two main platforms to clients through its subsidiaries: "ALT5 Pay" and "ALT5 Prime." ALT5 Pay is a cryptocurrency payment gateway that allows merchants to choose to automatically convert to fiat currency or receive payments in digital assets; ALT5 Prime is an electronic over-the-counter trading platform that allows registered and approved clients to buy and sell digital assets.
The company is considering spinning off its biotechnology business, which will continue to operate under the name "Alyea Therapeutics Corporation."
II. Announcement Details
ALT5 Sigma Corporation will issue and sell up to 100 million shares of common stock at a price of $7.50 per share through registered direct offerings;
The total fundraising from this issuance is expected to be approximately $1.5 billion, with the net proceeds used to acquire $WLFI tokens.
The specific content of the announcement is as follows:
"ALT5 Sigma Corporation (NASDAQ: ALTS)(FRA: 5AR1) (hereinafter referred to as 'the Company' or 'ALT5') today announced that the Company has reached a final agreement to issue and sell up to 100 million shares of common stock at a price of $7.50 per share (or alternative common stock equivalents). Before deducting placement agent fees and other issuance costs, the total fundraising from this issuance is expected to be approximately $1.5 billion. The securities paid for in the private placement will be in the form of $WLFI tokens from World Liberty Financial, Inc. ('WLFI'). This issuance is priced at market price according to NASDAQ rules.
World Liberty Financial, Inc. is the lead investor in the concurrent private placement, with participation from some of the largest institutional investors and well-known crypto venture capital firms globally.
This issuance is expected to be completed around August 12, 2025, but is subject to customary closing conditions. The Company plans to use the net proceeds from this issuance to acquire $WLFI tokens, establish the Company's cryptocurrency fund operations, resolve existing litigation, repay existing debts, support the Company's ongoing business operations, and for working capital and general corporate purposes.
AGP/Alliance Global Partners is acting as the sole placement agent for this issuance.
The securities issued in this registered direct offering (excluding those issued in the private placement) are being offered and sold by ALT5 pursuant to a 'shelf' registration statement on Form S-3 (Registration No. 333-289176) (including the base prospectus). This statement was previously submitted to the U.S. Securities and Exchange Commission ('SEC') on August 1, 2025, and was declared effective by the SEC on August 8, 2025. The securities proposed to be issued in this registered direct offering will only be issued through a prospectus supplement, which forms part of the registration statement. The final prospectus supplement related to this registered direct offering and the accompanying base prospectus will be submitted to the SEC and will be available on the SEC website at http://www.sec.gov.
The sale and offering of the securities in the aforementioned private placement are not public offerings and have not been registered under Section 4(a)(2) of the Securities Act of 1933, as amended (the 'Securities Act'), and/or under Regulation D promulgated thereunder, nor have they been registered under the Securities Act or applicable state securities laws. Therefore, unless exempt from the registration requirements of the Securities Act and such applicable state securities laws under a valid registration statement, the securities in the private placement may not be resold or transferred in the United States."
III. Benefits of the "Strong Alliance"
Zach Witkoff, co-founder and CEO of World Liberty Financial, Inc., will become the chairman of the ALT5 board; Eric Trump will become a board member; Zak Folkman, co-founder and COO of World Liberty Financial, will become a board observer; WLFI advisor Matt Morgan will become its Chief Investment Officer.
The most immediate benefit brought to ALT5 Sigma Corporation by this strong alliance is the positive impact on short-term stock prices.
Once the news of ALT5 Sigma Corporation creating the WLFI treasury reserve was released, its stock price quickly surged to a high of $9.25, but then sharply dropped to a low of $6.31, a decline of 31.78%.
Secondly, WLFI is deeply tied to Trump, and ALT5 Sigma Corporation holds a large amount of WLFI, with core personnel from the WLFI project joining, which means ALT5 Sigma Corporation is closely aligned with the President. Currently, as the U.S. cryptocurrency policy is becoming more lenient, companies closely tied to Trump's camp are more likely to capture policy trends in a timely manner and may even gain some influence in the policy-making process, allowing them to position themselves in line with policy directions and avoid potential regulatory risks.
Additionally, ALT5 Sigma Corporation effectively has the endorsement of the U.S. President, and Trump's political and business influence serves as a powerful stepping stone for ALT5 Sigma Corporation to expand its business.
For WLFI, WLFI has found a shell company that is already listed on NASDAQ.
First, this move by WLFI can accelerate the financing process. The $1.5 billion in funds to purchase WLFI tokens will directly boost WLFI's price and bring long-term investor confidence. It can help World Liberty Financial quickly attract a large amount of capital for token ecosystem construction, market expansion, or reserve replenishment, aligning with ALT5 Sigma Corporation's rapid financing to advance the WLFI treasury strategy.
Secondly, leveraging the shell company can better adapt to regulatory needs. ALT5 Sigma Corporation strictly adheres to NASDAQ rules and SEC regulations during the issuance process, and its registered direct offering is based on a valid registration statement, providing a compliant framework for WLFI to go public through the shell company.
IV. Who Else Has Announced the WLFI Treasury Reserve Plan?
Another company that has announced the WLFI treasury reserve plan is BigStrategy Inc.
BigStrategy Inc. is an innovative company focused on the blockchain sector, operating a micro-strategy project on the BSC chain, dedicated to building a unique crypto-financial ecosystem. BigStrategy Inc. is positioned as "the on-chain company for the WLFI micro-strategy model," focusing on reserving WLFI and USD1.
On August 5, 2025, the micro-strategy project BigStrategy Inc. on the BSC chain announced on social media that it has reserved over 2 million WLFI tokens and plans to continue increasing its holdings. The company stated that this is a long-term capital allocation strategy aimed at creating real value for shareholders. It emphasized that this move is not based on speculation but is about achieving value creation through strict discipline and continuous accumulation.
Summary
Nick Tomaino, founder of the crypto venture capital firm 1confirmation, once stated: 'Every holder is now looking for treasury companies to save their assets. However, the treasury company model only works when the market generally believes that the cryptocurrency has value storage capabilities. No one wants a group of fraudulent insiders to profit. This is the most significant difference between tokens that can credibly serve as value storage and so-called 'company tokens.'
Vitalik has also pointed out: he supports the so-called Ethereum treasury companies but warns that if mishandled, this trend could evolve into an 'over-leveraged game.'
Crypto treasury reserve plans have indeed revived some companies, but more often they lead to extreme fluctuations in stock prices. The dramatic volatility of stock prices, regulatory uncertainties, and the essential differences between 'company tokens' and true value storage tokens all remind the market that crypto treasury reserve plans are not a panacea, and the risks and challenges behind them cannot be ignored.
For companies, short-term capital frenzies may bring stock price growth, but how to find actual value anchors in the real world is a serious question that crypto treasury companies should contemplate; for the crypto industry, the prevalence of crypto treasury reserves is an inevitable stage of industry development, and how to discard the labels of 'bubble' and 'speculation' brought by crypto treasury companies and turn widespread skepticism into a real opportunity for industry innovation is an urgent task for practitioners.
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