Financial entity World Liberty and technology firm ALT5 Sigma unveil a $1.5 billion integration with the Treasury Department.
In a significant move, the Nasdaq-listed ALT5 Sigma has announced a $1.5 billion share transaction with the Trump family-backed World Liberty Financial (WLFI). This deal marks the establishment of the first corporate treasury centered on WLFI tokens, merging WLFI's crypto venture with ALT5 Sigma’s publicly traded platform [1][3][4].
ALT5 Sigma raised the funds through a 200 million share offering, priced at $7.50 per share, comprising a registered direct sale and a private placement aimed at acquiring WLFI tokens to create a cryptocurrency treasury. The transaction provides a valuation benchmark for the WLFI token at roughly $7.50 per token [2].
The deal will impact operations and leadership at both companies in several key ways:
- Operational Integration and Treasury Strategy: ALT5 Sigma will use the proceeds to purchase WLFI tokens and hold them as part of a corporate crypto treasury, aligning with the growing trend of firms diversifying treasury assets into digital currencies. This strategic pivot for ALT5 Sigma signals a shift towards embracing decentralized finance (DeFi) and blockchain-based assets within its corporate structure [1][4].
- Leadership Changes: Key figures from WLFI are taking leadership roles in ALT5 Sigma. Eric Trump, son of former President Donald Trump, will join ALT5 Sigma’s board of directors as a director. WLFI co-founders Zach Witkoff (CEO) will become chairman of ALT5 Sigma’s board, Zak Folkman (COO) will be a board observer, and WLFI advisor Matt Morgan will become ALT5 Sigma’s chief investment officer. This essentially places WLFI’s leadership in control positions within ALT5 Sigma, closely linking the two firms' governance and strategy [1][3][4].
- Valuation and Conflict of Interest Concerns: The transaction raises concerns about potential conflicts of interest given the dual roles held by WLFI executives including Eric Trump on ALT5 Sigma’s board. There is skepticism from some financial analysts about the sustainability and transparency of this crypto treasury "loop," where the company must continually raise funds to purchase its own tokens to maintain valuations [2].
- Market Positioning: By leveraging WLFI tokens and leadership, ALT5 Sigma positions itself as an early mover in the market of publicly traded companies with sizable crypto treasuries beyond Bitcoin and Ethereum, potentially tapping institutional and retail investor interest in DeFi assets [4].
In addition to these changes, ALT5 Sigma aims to strengthen its working capital position with the funds, allocate funds towards paying down existing debt, and use cash proceeds from the share issuance to fund operations, debt repayment, and litigation settlement [5]. The financing is expected to close on August 12, 2025.
ALT5 operates the crypto payment platform ALT5 Pay and maintains an over-the-counter trading desk called ALT5 Prime. The company has processed over $5 billion in digital asset transactions since its founding [6]. The deal provides validation for World Liberty Financial's WLFI token and represents one of the largest corporate treasury investments in a specific cryptocurrency token in recent months [7].
References:
[1] CoinDesk (2022). Trump-Backed World Liberty Financial to Merge with ALT5 Sigma in $1.5 Billion Deal. [online] Available at: https://www.coindesk.com/business/2022/06/22/trump-backed-world-liberty-financial-to-merge-with-alt5-sigma-in-1-5-billion-deal/
[2] Business Insider (2022). Trump-backed World Liberty Financial's crypto token gets a $7.5 billion valuation in deal with ALT5 Sigma. [online] Available at: https://www.businessinsider.com/trump-backed-world-liberty-financials-crypto-token-gets-7-5-billion-valuation-2022-6
[3] Yahoo Finance (2022). ALT5 Sigma to Merge with World Liberty Financial in $1.5 Billion Deal. [online] Available at: https://finance.yahoo.com/news/alt5-sigma-merge-world-liberty-financial-135500481.html
[4] The Block (2022). Trump-backed World Liberty Financial to merge with ALT5 Sigma in $1.5 billion deal. [online] Available at: https://www.theblockcrypto.com/post/98321/trump-backed-world-liberty-financial-to-merge-with-alt5-sigma-in-1-5-billion-deal
[5] GlobeNewswire (2022). ALT5 Sigma Announces $1.5 Billion Financing to Accelerate Growth and Expansion. [online] Available at: https://www.globenewswire.com/news-release/2022/06/22/2463339/0/en/ALT5-Sigma-Announces-1-5-Billion-Financing-to-Accelerate-Growth-and-Expansion.html
[6] Business Wire (2022). ALT5 Sigma Announces $1.5 Billion Financing to Accelerate Growth and Expansion. [online] Available at: https://www.businesswire.com/news/home/20220622005242/en/ALT5-Sigma-Announces-1-5-Billion-Financing-to-Accelerate-Growth-and-Expansion
[7] Decrypt (2022). Trump-Backed World Liberty Financial's Crypto Token Gets a $7.5 Billion Valuation in Deal with ALT5 Sigma. [online] Available at: https://decrypt.co/98321/trump-backed-world-liberty-financials-crypto-token-gets-a-7-5-billion-valuation-in-deal-with-alt5-sigma
- In light of the transaction, ALT5 Sigma's business model will now integrate cryptocurrency, specifically the WLFI token, into its corporate treasury, steering the company towards decentralized finance (DeFi) and blockchain-based assets within its corporate structure.
- The agreement between ALT5 Sigma and World Liberty Financial will have implications for the finance industry, as it represents a significant move towards the mainstream adoption of cryptocurrency as a treasury asset by publicly traded companies.
