ALT5 Sigma Secures $1.5B Investment as Eric Trump Joins Board

ALT5 Sigma, a publicly traded digital asset infrastructure firm listed on Nasdaq under the ticker "ALTS," has completed a $1.5 billion capital raise through a registered direct offering and a concurrent private placement. The financing was led by World Liberty Financial (WLFI), a decentralized finance project backed by members of the Trump family [1]. As part of the deal, Eric Trump has joined ALT5’s board of directors, while WLFI co-founder Zach Witkoff has been appointed as Chairman [2]. The transaction also involved Kraken managing the assets, adding institutional credibility to the offering [1].

The registered direct offering was executed under the company’s Form S-3 shelf registration, which became effective on August 8, 2025, with the prospectus supplement filed on August 11 [2]. A parallel private placement was conducted through non-public transactions exempt from registration under Section 4(a)(2) of the Securities Act and Rule 506(b) of Regulation D. Holders of these securities cannot resell them in the U.S. without registration or exemption [1].

ALT5 Sigma’s acquisition of approximately 7.5% of the WLFI token supply positions it as a major stakeholder in the Trump-backed DeFi initiative [2]. Eric Trump highlighted the strategic potential of integrating WLFI and its USD1 stablecoin with ALT5’s treasury strategy, calling it a unique combination that could reshape the market [1]. He also stated that the WLFI token is expected to be listed on both major centralized exchanges and decentralized platforms, enhancing its liquidity and governance reach [2].

The market responded favorably, with ALT5’s stock rising by 7% shortly after the deal was announced [4]. The TRUMP meme coin, which has no formal connection to the Trump family but is loosely associated with the brand, also surged nearly 9% following the Nasdaq event [3]. These movements underscore the influence of high-profile endorsements and brand recognition in the crypto market [4].

Despite the positive market reaction, the initiative has faced scrutiny. Earlier in September, fraudsters exploited the project’s momentum to launch a fake giveaway scam, affecting thousands of users [1]. This event has raised concerns among investors, many of whom are balancing the promise of high returns with the risk of scams and regulatory uncertainty [2].

The deal reflects a growing trend of traditional finance entities and influential figures entering the crypto space to inject capital and credibility. By aligning with WLFI, ALT5 aims to leverage Trump-backed momentum and expand its digital asset management framework [4]. The strategy includes using token-backed reserves to stabilize WLFI’s token value and address existing debts [2].

Zach Witkoff, now ALT5’s board chair, emphasized that the partnership is part of a long-term vision to establish a sustainable digital asset management framework [1]. Analysts have noted, however, that the success of the initiative will depend on transparency, execution, and the ability to deliver measurable outcomes [4].

Donald Trump Jr. has also joined the project as an observer, further amplifying its visibility. The involvement of prominent Trump family members is seen as a strategic move to attract both capital and media attention [2]. As the partnership progresses, investors and analysts will be closely monitoring the deployment of the $1.5 billion investment for signs of progress, liquidity, and long-term stability in WLFI’s ecosystem [4].

Source:

[1] Eric Trump and Alt5 Sigma Team Ring Nasdaq Opening Bell – Bitcoin.com

https://news.bitcoin.com/eric-trump-and-alt5-sigma-team-ring-nasdaq-opening-bell/

[2] World Liberty Financial and Alt5 Sigma Rings Opening Bell – Nasdaq

https://www.nasdaq.com/events/world-liberty-financial-and-alt5-sigma-rings-opening-bell

[3] TRUMP Meme Coin Surges After Nasdaq Event – BeInCrypto

https://beincrypto.com/trump-nasdaq-bell-world-liberty-alt5-deal/

[4] Eric Trump and Alt5 Sigma Invest $1.5B in WLFI – Cryptopolitan

https://www.cryptopolitan.com/eric-trump-alt5-sigma-invests-1-5b-in-wlfi/