Bitcoin News Today: Baby BTC Capital Invests $100M in AACG, Gains Control and Expands Bitcoin Ecosystem Integration

NASDAQ-listed ATA Creativity Global (AACG) has signed a term sheet with Baby BTC Strategic Capital, a special-purpose fund managed by the Babylon Foundation, marking a significant strategic shift in the company’s business model. According to the agreement, Baby Capital will subscribe for $30 million in new shares and obtain $70 million in warrants, totaling a $100 million investment. Upon completion, Baby Capital will gain control of the listed company, appoint three directors, and restructure the board, signaling a deep integration with the Bitcoin ecosystem [1].

This move represents a departure from the traditional approaches of other crypto-focused listed companies, such as MicroStrategy (MSTR), which has focused on accumulating large quantities of Bitcoin as a store of value. Instead, Baby Capital's strategy centers around activating the Bitcoin ecosystem through innovative technology and expanding Bitcoin’s role beyond mere value storage [1].

A key component of the partnership is the Babylon project, a Bitcoin Layer 2 network that enables trustless and non-custodial staking. Since its mainnet launch in August 2024, Babylon has attracted over 45,000 Bitcoins in staking, with a total value locked (TVL) exceeding $5 billion as of July 2025 [1]. The project is co-founded by Professor David Tse from Stanford University and Dr. Fisher Yu, and has secured over $96 million in funding from top-tier investors including Paradigm, Polychain Capital, and OKX Ventures [1].

The native token of the Babylon ecosystem, Baby, is already listed on major exchanges such as Binance, OKX, and Bybit, with a circulating market capitalization of over $100 million. The investment by Baby Capital is expected to reshape the token’s value, as the firm plans to acquire Baby tokens with a total value of $100 million—equivalent to a substantial portion of the token’s current market cap [1].

The strategy also includes the establishment of a “strategic reserve treasury” that will hold Baby tokens and Bitcoin, with acquisitions to be funded through phased equity issuances and convertible bonds. This approach aims to create a positive feedback loop of asset appreciation and market capitalization growth, differing significantly from conventional methods that focus on high-market-cap crypto assets [1].

Looking ahead, the collaboration between Baby Capital and ATA Creativity Global is expected to position the listed company as a central hub connecting traditional capital markets with the Bitcoin ecosystem. The partnership leverages Babylon’s technological leadership in Bitcoin staking and the growing demand for compliant entry points into crypto innovation [1].

Source: [1] Baby BTC Strategic Capital Signs Term Sheet with NASDAQ-Listed ATA Creativity Global – Takes Control of the Listed Company, Acquires $BABY Token and Develops BTCfi (https://www.newsbtc.com/press-releases/baby-btc-strategic-capital-signs-term-sheet-with-nasdaq-listed-ata-creativity-global-takes-control-of-the-listed-company-acquires-baby-token-and-develops-btcfi/)