ALT5 Sigma to Raise $1.5B for WLFI Strategy

ALT5 Sigma Corporation, a blockchain-based fintech firm listed on Nasdaq, is set to raise $1.5 billion to implement a treasury strategy for the World Liberty Financial (WLFI) token, where it plans to hold approximately 7.5% of the total supply. The funding, achieved through a registered direct offering and private placement, is expected to close around August 12, pending standard conditions. ALT5 aims to issue up to 200 million shares at $7.50 each, equally divided between the two offerings. The private placement will be financed by WLFI tokens from World Liberty Financial, a crypto venture supported by the Trump family, which is also the primary investor. ALT5 mentioned that other significant contributors include major institutional investors and well-known crypto venture capital firms, though their names remain undisclosed. This announcement comes after a report indicating that World Liberty Financial is looking to secure around $1.5 billion to establish a publicly traded treasury holding WLFI tokens, without identifying ALT5 Sigma. Digital asset treasury companies have gained traction recently, and ALT5 is pioneering the creation of one utilizing the WLFI token. Following the news, ALT5’s shares dipped over 8% in pre-market trading, further declining to $8.22, which equates to a market capitalization of roughly $165 million. As part of this agreement, Zach Witkoff, co-founder and CEO of WLFI, will take on the role of chairman at ALT5’s board, with Eric Trump being appointed as a director. Additionally, Zak Folkman, co-founder and COO of WLFI, will join as a board observer, while Matt Morgan will become the chief investment officer. The raised funds will facilitate the acquisition of WLFI tokens, establish crypto treasury operations, reduce debt, settle ongoing legal cases, and support business operational costs. The sole placement agent for this initiative is A.G.P./Alliance Global Partners, with legal services provided by Sullivan & Worcester LLP, HSF Kramer LLP, Clark Hill PLC, and Lucosky Brookman LLP. Founded in 2018, ALT5 offers blockchain-based technology for tokenization, trading, clearing, settlement, and crypto payments. Its subsidiary, ALT5 Sigma, operates ALT5 Pay (a crypto payment gateway for approved merchants with fiat conversion options) and ALT5 Prime (an over-the-counter trading platform), claiming to have processed over $5 billion in crypto transactions since inception. WLFI tokens, designed to work alongside World Liberty Financial’s USD1 stablecoin, are yet to be tradable but will be accessible for early backers following a near-unanimous vote from token holders last month. The release plan for remaining tokens from the total supply of 100 billion will be decided in a subsequent community vote. Stay informed on the latest crypto VC funding and M&A trends by signing up for The Funding newsletter for free weekly updates.