Original Article Title: "From Clinging to Trump's Thigh to Left-Hand Reverse Handshake, How to Play the Capital Game of ALT5 and WLFI?"
Original Article Author: Deng Tong, Golden Finance
On August 11, 2025, ALT5 Sigma Corporation announced a total of $1.5 billion registered direct offering and concurrent private placement to launch World Liberty Financial (WLFI)'s treasury strategy. This is the second company to announce the launch of WLFI's treasury strategy following BigStrategy Inc.
What is the main business of ALT5 Sigma Corporation? What are the benefits of the "strong alliance" between ALT5 Sigma Corporation and WLFI? Who else has announced a WLFI treasury reserve plan?
ALT5 Sigma Corporation is a financial technology company that provides next-generation blockchain-based technology for the tokenization, trading, clearing, settlement, payment, and secure custody of digital assets.
ALT5 Sigma, Inc. (a wholly-owned subsidiary of ALT5 Sigma Corporation) was founded in 2018. Through its subsidiary, ALT5 Sigma, Inc. offers two main platforms to clients: "ALT5 Pay" and "ALT5 Prime." ALT5 Pay is a cryptocurrency payment gateway where merchants can choose to automatically convert to fiat currency or receive payments in digital asset form; 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 biotech business, which will continue to operate under the name "Alyea Therapeutics Corporation."
- ALT5 Sigma Corporation will issue and sell up to a total of 100 million shares of common stock through a registered direct offering at a price of $7.50 per share;
- The total proceeds from this offering are expected to be approximately $1.5 billion, and the net proceeds from the offering will be used to acquire $WLFI tokens.
The announcement details are 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 a total of 100 million shares of common stock through a registered direct offering at a price of $7.50 per share (or the equivalent of common stock). Excluding underwriting fees and other offering expenses, the total proceeds from this offering are expected to be approximately $1.5 billion. The consideration paid in the private placement is in the form of the $WLFI token of World Liberty Financial, Inc. This offering is priced based on market price under Nasdaq rules.
World Liberty Financial, Inc. is the lead investor in the concurrent private placement, with participation from several of the world's largest institutional investors and well-known crypto venture capital firms.
This offering is expected to be completed around August 12, 2025, subject to customary closing conditions. The Company intends to use the net proceeds from this offering to acquire $WLFI tokens, establish the Company's cryptocurrency fund operations, resolve existing litigation, repay existing debts, support the Company's existing business operations, and for working capital and general corporate purposes.
AGP/Alliance Global Partners is serving as the sole placement agent for this offering.
The securities being offered in this registered direct offering (but not in the private placement) are being sold by ALT5 pursuant to the 「shelf」 registration statement on Form S-3 (Registration No. 333-289176) (including a base prospectus). This statement was previously filed with the U.S. Securities and Exchange Commission (「SEC」) on August 1, 2025, and declared effective by the SEC on August 8, 2025. The securities to be offered in this registered direct offering will be sold solely by means of a prospectus supplement to the base prospectus, which is part of the registration statement. The final prospectus supplement and accompanying base prospectus relating to this registered direct offering will be filed with the SEC and will be available on the SEC website at http://www.sec.gov.
The offer and sale of the securities in the aforementioned private placement are not being made through a public offering and are not being registered under the revised 1933 Securities Act (referred to as the 「Securities Act」) Section 4(a)(2) and/or Regulation D under Rule 506(b) promulgated thereunder, or registered under the Securities Act or applicable state securities laws. As a result, unless registered under an effective registration statement or exempt from the registration requirements of the Securities Act and such applicable state securities laws, the securities in the private placement may not be resold or transferred in the United States.」
World Liberty Financial, Inc. Co-Founder and CEO Zach Witkoff will become the Chairman of the ALT5 board; Eric Trump will join as a board member; World Liberty Financial's Co-Founder and COO Zak Folkman will become a board observer; WLFI Advisor Matt Morgan will serve as its Chief Investment Officer.
One of the most immediate benefits of this strong partnership for ALT5 Sigma Corporation is the positive impact on its short-term stock price.
Upon the announcement of ALT5 Sigma Corporation establishing the WLFI treasury reserve, its stock price surged to a high of $9.25, only to then experience a steep decline to a low of $6.31, marking a 31.78% drop.
Secondly, with WLFI deeply tied to Trump and ALT5 Sigma Corporation holding a significant amount of WLFI, along with key WLFI team members joining, it means that ALT5 Sigma Corporation now has a strong political connection. At a time when U.S. crypto policies are relaxed, companies with strong ties to the Trump administration are better positioned to promptly understand policy directions, potentially even influencing policy decisions, allowing them to proactively align their business with regulatory trends and mitigate regulatory risks.
Furthermore, ALT5 Sigma Corporation essentially gains a direct endorsement from the U.S. President, and Trump's political and business influence serves as a key asset for ALT5 Sigma Corporation to expand its operations.
For WLFI, this partnership means they have found a publicly listed shell company on NASDAQ.
Firstly, this move by WLFI can expedite the fundraising process; a $1.5 billion purchase of WLFI tokens will directly boost WLFI's price and instill long-term investor confidence. This will help World Liberty Financial attract a large amount of capital in a short period, to be used for token ecosystem development, market expansion, or reserve fund replenishment, aligning with ALT5 Sigma Corporation's strategy for rapid fundraising to advance the WLFI treasury plan.
Secondly, leveraging a shell company can better adapt to regulatory needs. ALT5 Sigma Corporation strictly adheres to Nasdaq rules and relevant U.S. Securities and Exchange Commission regulations during the issuance process, and its direct listing is based on a valid registration statement, providing compliance support for WLFI's listing through a shell company.
Another company that has announced a WLFI Treasury Reserve Plan is BigStrategy Inc.
BigStrategy Inc. is an innovative company focusing on the blockchain field, operating a micro-strategy project on the BSC chain, dedicated to building a unique crypto financial ecosystem. BigStrategy Inc. positions itself as a "on-chain company of the WLFI micro-strategy model," focusing on reserving WLFI and USD1.
On August 5, 2025, the BSC on-chain micro-strategy project BigStrategy Inc. announced on social media that it has reserved over 2 million WLFI tokens and plans to continue to accumulate. 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 on value creation through strict discipline and continuous accumulation.
Founder of the crypto venture firm 1confirmation, Nick Tomaino, once wrote: "Today, every holder is looking for a treasury company to rescue their assets. However, the treasury company model only works when the market broadly believes that the cryptocurrency has a store of value function. No one wants to see a group of fraudulent insiders profit. This is where the most significant difference lies between tokens that can act as value stores in a trustworthy and neutral manner and so-called 'company coins'."
Vitalik also noted: He supports the so-called Ethereum treasury companies, but warned that if handled improperly, this trend could turn into an "over-leveraged game."
The crypto treasury reserve plan has indeed brought some companies back to life, but more often, it has just led to wild price swings. The drastic price fluctuations, regulatory uncertainties, and the inherent differences between "company coins" and tokens with real value storage all serve as reminders to the market: the crypto treasury reserve plan is not a panacea, and the risks and challenges behind it must not be ignored.
For companies, a short-term capital frenzy may bring stock price growth, but finding real-world value anchors is the key issue that crypto treasury companies should seriously consider; for the crypto industry, the prevalence of crypto treasury reserves is a necessary stage of industry development. How to shed the labels of "bubble" and "speculation" brought by crypto treasury companies and turn widespread questioning into a real opportunity to drive industry innovation is a top priority for practitioners.
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