ALT5 Sigma Raises $1.5B to Buy 7.5% of WLFI Token
ALT5 Sigma (Nasdaq: ALTS) has raised $1.5 billion through a 200 million-share offering to buy 7.5% of the World Liberty Financial (WLFI) token supply. The deal splits into a 100 million-share public sale to institutions at $7.50 per share and a 100 million-share private placement paid in WLFI tokens at $0.3659 each. Post-offering, ALT5 Sigma plans to use the proceeds for additional WLFI token purchases, bolstering its crypto treasury, repaying debt, settling litigation, and funding operations. This landmark move makes ALT5 Sigma one of the first public firms to hold a non-Bitcoin token in its corporate treasury, echoing MicroStrategy’s Bitcoin strategy. Leadership shifts include WLFI co-founder Zach Witkoff as chairman and Eric Trump joining the board. The company, operator of ALT5 Pay and ALT5 Prime with over $5 billion in processed digital asset transactions, saw its stock drop nearly 10% on the announcement. Traders should note the growing trend of altcoin adoption by corporate treasuries, which could increase WLFI token demand and market volatility.
Bullish
ALT5 Sigma’s $1.5 billion share sale to acquire 7.5% of the WLFI token supply significantly boosts institutional demand and highlights a shift toward non-Bitcoin tokens in corporate treasuries. In the short term, the large-scale token purchase and public endorsement are likely to drive WLFI token price higher and increase trading volatility. Over the long term, holding WLFI in a public company’s treasury may enhance market confidence, attract further institutional interest, and support sustained price appreciation.