ALT5 Sigma raises $1.5B to expand crypto treasury through WLFI token deal

ALT5 Sigma has completed a $1.5 billion capital raise through a dual offering of 200 million shares, with half allocated to institutional investors and the other half to World Liberty Financial (WLF) in exchange for WLFI tokens [1]. The offering, priced at $7.50 per share, was announced on August 8 and finalized on August 12, with A.G.P./Alliance Global Partners acting as the sole placement agent [2]. The funding is intended to expand the company’s cryptocurrency treasury operations, reduce debt, and support ongoing business activities [4].

Eric Trump, son of former U.S. President Donald Trump, has joined ALT5 Sigma’s board as a director, while WLFI co-founder and CEO Zach Witkoff will serve as chairman. Zak Folkman, WLFI’s COO, will also be appointed as a board observer [3]. Donald Trump Jr. described the initiative as a “true breakthrough” and emphasized that both he and Eric Trump are “fully invested” in driving the WLFI token forward, with the goal of achieving “global governance reach and liquidity” through broad exchange listings.

The WLFI token has now been assigned a valuation of $0.20 per token following the deal with ALT5 [4]. This marks the first formal valuation of the token and aligns with the Trump family-backed DeFi initiative’s broader market introduction strategy. ALT5 will become a significant early holder of the WLFI token, acquiring approximately 7.5% of the total supply [1]. The company, established in 2018 and operating blockchain-based platforms through its ALT5 Pay and ALT5 Prime services, has processed over $5 billion in cryptocurrency transactions and is listed in the Russell indexes [5].

Following the announcement, shares of ALT5 Sigma surged 6% in initial trading but eventually closed down by 14% in mid-afternoon trading [2]. Such price volatility is not uncommon for publicly listed treasury firms in the crypto space, as seen earlier this summer with Sharplink Gaming, an Ethereum-linked treasury firm whose shares dropped 90% in a short period following its IPO [2]. The move has drawn comparisons to MicroStrategy’s corporate Bitcoin treasury strategy, positioning ALT5 as a major player in corporate crypto asset management [6].

The shares were issued through a registered direct offering and a private placement, both structured to facilitate the integration of WLFI tokens into ALT5’s treasury [7]. The registered offering received SEC approval on August 8, with the transaction expected to be finalized on August 12. This development is seen as one of the largest corporate treasury investments in a DeFi token to date and could set a precedent for future token-backed corporate strategies [7].

The partnership between ALT5 Sigma and World Liberty Financial highlights an aggressive bet on the Trumps’ DeFi vision, well before the WLFI token is expected to enter the broader market. The integration of WLFI into ALT5’s treasury strategy, along with the involvement of high-profile Trump family members, is expected to bring increased media and market attention to the project [3].