ALT5 Sigma Corporation (Nasdaq: ALTS) has announced the launch of a $1.5 billion capital raise, combining a registered direct offering and a concurrent private placement to initiate the World Liberty Financial Treasury Strategy.
The company has entered into definitive agreements to issue up to 200 million shares of common stock. They will split evenly between a registered direct offering to institutional investors and a private placement led by World Liberty Financial.
According to a report, each share is $7.50, marking the transaction as one of the largest of its kind this year. World Liberty Financial, the Trump family-backed crypto firm, is taking an outsized stake by contributing its native $WLFI tokens. These will act as consideration for half the shares issued, a striking demonstration of the token’s integration with public markets.
ALT5 Sigma to Hold 7.5% of WLFI Supply Upon Closing
Upon closing, expected August 12, ALT5 Sigma will hold approximately 7.5% of the entire $WLFI token supply. Also, A.G.P./Alliance Global Partners, well-known for managing landmark digital asset deals, acts as the sole placement agent.
ALT5 intends to use the windfall to acquire additional $WLFI tokens, fueling its treasury strategy, as well as to bolster its cryptocurrency operating systems, settle existing litigation, pay down debt, and provide working capital for ongoing business operations. The move signals a transformation for ALT5, from speculative blockchain operator to a capital-backed powerhouse with long-range ambitions.
This initiative aligns with the broader WLFI vision promoted by World Liberty Financial, which has quickly gained traction among major tech and crypto investors following its 2024 launch. Mirroring strategies pioneered by Michael Saylor’s Strategy, which famously pivoted to Bitcoin holdings as a corporate reserve, WLFI and ALT5 Sigma aim to integrate public equity and digital assets on an unprecedented scale.
Zach Witkoff to Chair ALT5 Board; Eric Trump Joins as Director
The offering catalyzes significant changes at the boardroom table. Zach Witkoff, CEO of World Liberty Financial, should take over as Chairman of ALT5’s board, while Eric Trump joins as a director, further solidifying the Trump family’s presence in the crypto sector.
Zak Folkman will become a board observer, and Matt Morgan steps in as Chief Investment Officer. These appointments, alongside the sizable capital infusion, aim to enhance ALT5 Sigma’s strategic positioning and market credibility.
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