Key Takeaways:
- ALT5 Sigma acquires 7.5% tokens of World Liberty Financial (WLFI), a DeFi project backed by Eric Trump.
- Several WLFI executives, including Eric Trump, join ALT5’s board to lead their digital asset strategy.
- The acquisition announcement led to a 16% rise in ALT5’s share price, followed by a 5% rise in TRUMP.
ALT5 Sigma Corporation (NASDAQ: ALTS) has announced a landmark $1.5 billion transaction with World Liberty Financial (WLFI), acquiring roughly 7.5% of the WLFI token supply as part of a new cryptocurrency treasury strategy.
ALT5 Sigma Corporation (ALTS) is a publicly traded company that offers blockchain-based solutions for digital asset trading, payments, and settlement. World Liberty Financial (WLFI) is a Trump-linked decentralized finance (DeFi) protocol that issues the rapidly expanding USD1 stablecoin, which uses WLFI as its governance token.
ALT5 raised $1.5 billion in two ways: firstly, through a public stock sale (registered direct offering) of 100 million shares at $7.50 each, and secondly, through a private deal (private placement) of 100 million shares at $7.50 each as well. By acquiring 7.5% of the WLFI token supply, several high-profile leadership changes have been made to ALT5’s board. WLFI co-founder Zach Witkoff will become ALT5’s Chairman, while Eric Trump will join the board as Director. Zak Folkman, WLFI Co-Founder and COO, will become a Board Observer, while Matt Morgan will become its Chief Investment Officer.
According to the press release, WLFI is the main investor in the Private Placement Offering, which featured participation from a limited group of the world’s leading institutional investors and renowned crypto venture capital firms.
The announcement led to a massive rally in ALT5’s stock price, with its stock rising over 16% in one day. The bullish sentiment spilled over into associated assets, with the TRUMP meme coin gaining 5%.
Boost for Stablecoin and DeFi Strategy
WLFI was founded in 2024 and has launched its own stablecoin, called the USD1. Before the current rise, WLFI had sold $550 million worth of tokens to investors between October and March. WLFI plans to list its native token on major exchanges by late August or early September, according to their X post.
Eric Trump, who is known to be an avid supporter of Ethereum (ETH), has tweeted multiple times in support of ETH. Analysts view the deal as part of a wider trend of publicly traded firms adding altcoins to their treasuries, a strategy recently mirrored by companies like BitMine and SharpLink Gaming.
Speculation Begins
The listing of the WLFI token could lead to a surge in speculative retail interest. However, its long-term performance will be determined by fundamentals such as the active users of its DeFi platform and stablecoin volume. The involvement of Trump’s family is drawing significant media attention, adding a sentiment-driven element to price movements.
