NASDAQ-listed company ATA Creativity Global (Nasdaq: AACG) (hereinafter referred to as "the company") has officially signed a term sheet with Baby BTC Strategic Capital (referred to as "Baby Capital"). Baby Capital is a special purpose fund led by the Babylon Foundation as the main limited partner for acquiring control of a listed company. According to the agreement, Baby Capital will subscribe for $30 million of new shares in the company and receive $70 million in warrants, with a total investment scale of $100 million. Upon completion of this transaction, Baby Capital will gain control of the company and will appoint three directors to the listed company, fully restructuring the board. This marks a new stage in the integration of traditional capital markets and the forefront of the Bitcoin ecosystem.
In the current market, some listed companies are laying out crypto assets through Treasury, such as MSTR focusing on large-scale Bitcoin accumulation as a core strategy, while SBET concentrates on the Ethereum-related ecosystem. However, the planning of Baby Capital's acquisition of ATA Creativity Global differs fundamentally from these models, with its core competitiveness reflected in two unique advantages:
1. Activate the Bitcoin ecosystem and create an entry point for DeFi applications
Bitcoin has long been limited to value storage scenarios due to the lack of smart contract functionality, making it difficult to integrate into DeFi and other application ecosystems. The innovative technology of the Babylon project precisely addresses this pain point — as an innovative second-layer Bitcoin network project, it focuses on achieving trustless, non-custodial Bitcoin staking to enhance the security of Proof-of-Stake (PoS) blockchains and other decentralized systems. The world's first trustless Bitcoin staking protocol it launched allows BTC holders to directly stake their assets on the Bitcoin blockchain without the need for third-party custody, packaging, or bridging, ensuring the security of user assets while integrating Bitcoin into the vast ecosystems of DeFi and other applications, thereby expanding its diverse applications beyond value storage.
Since the mainnet launch in August 2024, Babylon has attracted over 45,000 Bitcoins staked, and as of July 2025, the total staking value exceeds $5 billion. The strong growth of TVL fully verifies the market's recognition of its technology and model.
The Babylon team is composed of top industry talent: co-founded by Stanford University engineering professor and National Academy of Engineering member David Tse, an information theory expert, and Fisher Yu, a cryptographer and former senior engineer at Dolby Labs. Their deep academic background and technical accumulation provide a solid foundation for the project. On the capital side, Babylon has raised over $96 million through multiple rounds of financing, attracting the attention of many top institutions, including Paradigm (leading a $70 million financing in May 2024), Polychain Capital, Hack VC, OKX Ventures, Binance Labs (YZI Labs), Bullish Capital, Framework Ventures, Polygon Ventures, Castle Island Ventures, and Breyer Capital. This strong investor lineup demonstrates the industry's high recognition of its potential. Meanwhile, its native token Baby is available on all major trading platforms, including Binance, OKX, Bybit, Bitget, KuCoin, MEXC, and Gate, significantly enhancing trading convenience and market liquidity.
After the collaboration, ATA Creativity Global is expected to deeply collaborate with the Babylon project, fully expanding Bitcoin staking and delving into BTCFi and other businesses, with a goal to cover 100,000, 200,000, or even a million Bitcoins, integrating them into the DeFi ecosystem and various application scenarios. This is expected to activate the application potential of Bitcoin's $20 trillion financial assets, contrasting sharply with the asset accumulation models of MSTR and others.
2. Disruptive acquisition efforts, reshaping the value of Baby tokens
The Baby token, as the core asset of the Babylon ecosystem, has been listed on all major trading platforms such as Binance and OKX, with an actual circulating market value of over $100 million. This time, ATA Creativity Global's specialized acquisition of Baby tokens with a total scale of $100 million (including new stock subscriptions and warrants) is equivalent to investing a fund scale comparable to the circulating market value into the market, a level of intensity unprecedented in the industry — analogous to MSTR acquiring Bitcoin for $2 trillion or SBET acquiring Ethereum for $400 billion, which would have an explosive price reshaping effect.
After gaining control of the listed company, ATA Creativity Global will focus on "strategic reserve treasury" as its core, investing most of its funds into Baby tokens and a small portion into Bitcoin, leveraging the circulation basis of Baby tokens on mainstream trading platforms and the current market capitalization of over $100 million to build energy for future value growth.
After the collaboration, the company will build a continuous growth mechanism: issuing additional shares and convertible bonds in batches through PIPE and ATM forms, continuously acquiring Baby tokens and Bitcoin. The company’s ongoing acquisitions will create a positive cycle of "asset appreciation - market capitalization enhancement," which is distinctly different from the conventional layouts targeting high market capitalization tokens in the market.
The investment logic of this collaboration is clear and highly forward-looking: it is currently the eve of the explosion of the Bitcoin ecosystem, with the BTC L2 track in its early stages, and the Babylon staking protocol occupying a high ground due to its technological advantages; the combination of the Baby token's circulating market value basis of over $100 million and the large-scale acquisition by the listed company will accelerate value discovery and price reshaping; through controlling the listed company, it can provide a compliant channel for traditional capital to participate in crypto innovation, enjoying the benefits of compliance.
Based on future technological collaboration with Babylon, strong ecological and resource support, and the unique model of "listed holding platform + token asset acquisition + staking ecological returns," ATA Creativity Global is expected to become a core hub connecting traditional capital markets and the forefront of the Bitcoin ecosystem, seizing opportunities during the industry explosion period and creating significant returns for investors.
This article is contributed and does not represent the views of BlockBeats
