Deng Tong, Jinse Finance
On August 11, 2025, ALT5 Sigma Corporation announced a registered direct offering and simultaneous private placement totaling $1.5 billion to initiate the treasury strategy of World Liberty Financial (WLFI). This is the third company to announce the launch of the WLFI treasury strategy, following World Liberty Financial and BigStrategy Inc.
What business does ALT5 Sigma Corporation primarily engage in? What are the benefits of the 'strong alliance' between ALT5 Sigma Corporation and WLFI? Who else announced the WLFI treasury reserve plan?
1. What business does ALT5 Sigma Corporation primarily engage in?
ALT5 Sigma Corporation is a fintech company that provides next-generation technologies based on blockchain for the tokenization, trading, clearing and settlement, payment, and secure custody of digital assets.
ALT5 Sigma, Inc. (a wholly owned subsidiary of ALT5 Sigma Corporation) was established in 2018. ALT5 Sigma, Inc. provides two main platforms for clients through its subsidiaries: 'ALT5 Pay' and 'ALT5 Prime'. ALT5 Pay is a cryptocurrency payment gateway where merchants can choose to automatically convert to fiat currency or receive payments in digital assets; ALT5 Prime is an electronic over-the-counter trading platform that allows registered and approved clients to buy and sell digital assets.
The company is considering spinning off its biotechnology business, which will continue to operate under the name 'Alyea Therapeutics Corporation'.
2. Announcement Details
ALT5 Sigma Corporation will offer a total of up to 100 million shares of common stock at a price of $7.50 per share through a registered direct offering and sale;
The total funds raised from this issuance are expected to be approximately $1.5 billion, with the net proceeds used to acquire $WLFI tokens.
The specific details of the announcement are as follows:
ALT5 Sigma Corporation (NASDAQ: ALTS)(FRA: 5AR1) (hereinafter referred to as 'the company' or 'ALT5') today announced that it has reached a final agreement to offer and sell a total of up to 100 million shares of common stock (or equivalent common stock alternatives) through a registered direct offering at a price of $7.50 per share. Before deducting placement agent fees and other issuance expenses, the total funds raised from this issuance are expected to be approximately $1.5 billion. The securities paid for in the private placement are in the form of World Liberty Financial, Inc. ('WLFI')'s $WLFI tokens. This issuance is priced at market rates according to NASDAQ rules.
World Liberty Financial, Inc. is the lead investor in the concurrent private placement, with several of the world's largest institutional investors and well-known crypto venture capital firms also participating.
This issuance is expected to be completed around August 12, 2025, but must meet customary closing conditions. The company plans to use the net proceeds from this issuance to acquire $WLFI tokens, establish the company's cryptocurrency fund operations, resolve existing litigation, repay existing debts, support the company's current business operations, and for working capital and general corporate purposes.
AGP/Alliance Global Partners serves as the sole placement agent for this issuance.
The securities issued in this direct registration offering (excluding those issued in private placements) are offered and sold by ALT5 under the 'shelf' registration statement (including the base prospectus) in Form S-3 (Registration No. 333-289176). This statement was previously submitted to the U.S. Securities and Exchange Commission ('SEC') on August 1, 2025, and was declared effective by the SEC on August 8, 2025. The securities to be issued in this direct registration offering are offered only through the prospectus supplement, which constitutes part of the registration statement. The final prospectus supplement related to this direct registration offering and the accompanying base prospectus will be submitted to the SEC and can be viewed on the SEC website at http://www.sec.gov.
The sale and purchase of securities in the aforementioned private placement are not public offerings and have not been registered under the amended 1933 Securities Act (the 'Securities Act') Section 4(a)(2) and/or under Regulation D promulgated under that act, nor have they been registered under the Securities Act or applicable state securities laws. Therefore, unless exempt from registration requirements under an effective registration statement or the Securities Act and applicable state securities laws, the securities sold in the private placement may not be resold or transferred in the United States.
3. Benefits of the 'strong alliance'
Zach Witkoff, co-founder and CEO of World Liberty Financial, Inc., will become the chairman of the ALT5 board; Eric Trump will become a board member; Zak Folkman, co-founder and COO of World Liberty Financial, will become a board observer; WLFI advisor Matt Morgan will become its chief investment officer.
The most intuitive benefit brought by the strong alliance for ALT5 Sigma Corporation is the positive effect on short-term stock prices.
As soon as the news of ALT5 Sigma Corporation creating the WLFI treasury reserve was released, its stock price rapidly surged, peaking at $9.25, but then sharply fell to a low of $6.31, a decline of 31.78%.
Secondly, WLFI is deeply bound to Trump, and ALT5 Sigma Corporation holds a large amount of WLFI, with core personnel from the WLFI project joining, indicating that ALT5 Sigma Corporation is closely tied to the President. Currently, as U.S. crypto policy is loosening, companies deeply connected to Trump's camp are more likely to capture policy trends in a timely manner and even gain some influence in the policy-making process, allowing them to layout businesses that align with policy guidance and avoid potential regulatory risks.
Additionally, ALT5 Sigma Corporation has effectively secured an endorsement from the U.S. President, as Trump's political and business influence serves as a strong leverage point for ALT5 Sigma Corporation's business expansion.
For WLFI, WLFI found a shell company already listed on NASDAQ.
Firstly, this move by WLFI can accelerate the financing process, with the $1.5 billion funding to purchase WLFI tokens directly boosting the price of WLFI and bringing long-term investor confidence. It can help World Liberty Financial quickly attract significant capital for token ecosystem construction, market expansion, or reserve replenishment, consistent with ALT5 Sigma Corporation's strategy of rapid financing to promote the WLFI treasury strategy.
Secondly, leveraging a shell company can better adapt to regulatory needs. ALT5 Sigma Corporation strictly adheres to NASDAQ rules and relevant regulations from the U.S. Securities and Exchange Commission during the issuance process, with its registered direct offering based on a valid registration statement, providing a compliant framework for WLFI's listing through a shell company.
4. Who else announced the WLFI treasury reserve plan?
The company that also announced the WLFI treasury reserve plan is BigStrategy Inc.
BigStrategy Inc. is an innovative enterprise focused on the blockchain field, operating a micro-strategy project on the BSC chain, dedicated to building a unique crypto-financial ecosystem. BigStrategy Inc.'s positioning is as 'the on-chain company of the WLFI micro-strategy model', focusing on the reserves of WLFI and USD1.
On August 5, 2025, BigStrategy Inc. announced on social media that it has reserved over 2 million WLFI tokens and plans to continue accumulating. The company stated that this is a long-term capital allocation strategy aimed at creating actual value for shareholders. It emphasizes that this move is not based on speculation but is about value creation through strict discipline and continuous accumulation.
Summary
Nick Tomaino, founder of the crypto venture capital firm 1confirmation, has stated: 'Today, every token holder is looking for treasury companies to save their assets. However, the treasury company model only works when the market generally believes that the cryptocurrency has value storage capabilities. No one wants a group of fraudulent insiders to profit. This is precisely the most significant difference between tokens that can credibly serve as value storage and so-called 'company tokens.'
Vitalik has also pointed out that he supports the so-called Ethereum treasury company but warns that if mishandled, this trend could evolve into an 'over-leveraged game.'
The crypto treasury reserve plan has indeed revived some companies, but for many, it has only led to wild fluctuations in stock prices. The extreme volatility of stock prices, regulatory uncertainties, and the essential differences between 'company tokens' and genuine value-storage tokens all remind the market that the crypto treasury reserve plan is not a panacea, and the risks and challenges behind it should not be overlooked.
For companies, a short-term capital frenzy may lead to stock price growth, but how to find actual value anchors in the real world is a serious issue that crypto treasury companies should contemplate; for the crypto industry, the prevalence of crypto treasury reserves is a necessary stage in the industry's development. How to discard the labels of 'bubble', 'speculation', and others brought by crypto treasury enterprises and turn widespread skepticism into a genuine opportunity to drive industry innovation is an urgent task for practitioners.