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Eric Trump-backed crypto firm ALT5 Sigma sees stock plummet 60% since WLFI treasury announcement.
ByAinvest
Saturday, Sep 27, 2025 1:07 am ET1min read
ALT5 Sigma Corporation, a crypto infrastructure firm backed by Eric Trump, saw its stock decline 9.76% to $3.42 on Sep. 24, a 60% drop since announcing its decision to build a World Liberty Financial (WLFI) treasury. The company plans to raise $1.5 billion to acquire WLFI tokens, turning it into a digital asset treasury company.
ALT5 Sigma Corporation (Nasdaq: ALTS), a crypto infrastructure firm backed by Eric Trump, saw its stock decline by 9.76% to $3.42 on September 24, 2025, marking a 60% drop since announcing its decision to build a World Liberty Financial (WLFI) treasury [2]. The company plans to raise $1.5 billion through the sale of shares to acquire WLFI tokens, transforming it into a digital asset treasury (DAT) company [2].ALT5 Sigma was founded in 2018 and offers technologies to build crypto trading, clearing settlement, payment, and tokenization enterprises. The firm's decision to create a WLFI treasury, which is a significant quantity of cryptocurrencies held on its balance sheet, has led to a substantial decline in its stock price [2]. Despite the challenges, the company remains committed to its strategic shift towards digital assets.
The stock's decline highlights the market's reaction to the company's treasury plan. Since the announcement on August 11, ALT5 Sigma's stock has plummeted, indicating investor concerns about the move's potential impact on the company's financial health [2]. The company's decision to turn into a DAT company aligns with the broader trend of public companies investing in cryptocurrencies as treasury assets [2].
While the company faces challenges, it has the support of Eric Trump as a strategic adviser and observer. This appointment was reportedly made to comply with Nasdaq’s listing rules, despite speculation that Eric Trump would join the board [2]. The appointment of Eric Trump as an observer could potentially provide strategic insights and connections within the crypto industry.
As ALT5 Sigma navigates this significant shift, investors and financial professionals should closely monitor the company's performance and the broader market trends in digital assets. The company's ability to successfully implement its treasury plan and manage the associated risks will be crucial in determining its future success.
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