Highlights
ALT5 Sigma announces a $1.5 billion funding initiative to power World Liberty Financial’s (WLFI) ambitious digital asset reserves strategy. The move positions the Nasdaq-listed firm alongside other firms expanding their crypto holdings.
In a recent press release, ALT5 confirmed it had closed a $1.5 billion registered direct offering. The capital raised will be directed toward launching the World Liberty Financial (WLFI) Treasury Strategy, aimed at strengthening the company’s balance sheet and supporting long-term growth initiatives.
Notably, this would also be done through a combination of a registered direct offering and a concurrent private placement. Both offerings were priced at $7.50 per share. The private placement was funded entirely through contributions of WLFI tokens from World Liberty Financial itself.
A.G.P./Alliance Global Partners is acting as the sole placement agent for the transaction. While the registered direct offering will be conducted under an existing SEC-approved shelf registration, the private placement will remain exempt from public registration. This would limit resale options in the U.S. unless certain conditions are met.
The initiative is part of WLFI’s larger goal to create a significant crypto reserve based on its native token. CoinGape previously reported that World Liberty Financial is negotiating with major institutional investors to establish a publicly traded company focused on WLFI holdings. The fundraising goal is similar to ALT5 Sigma’s $1.5 billion plan, highlighting the strategic partnership between the two groups.
ALTS stock fell 5% during the announcement, as per Yahoo Finance data. This indicates a cautious response from the market. This implies that investors are balancing the funding plan’s size against the volatility of the cryptocurrency market as a whole and short-term dilution risks.
ALT5 Sigma’s move follows a growing trend of publicly traded companies using digital assets as core reserve holdings. Strategy, led by Michael Saylor, now controls over 628,000 BTC worth roughly $71 billion. They also recently filed a $4.2 billion offering to acquire even more Bitcoin.
Japanese investment firm Metaplanet has also bolstered its Bitcoin position, purchasing an additional 463 BTC for $53.7 million. This brought its total to nearly $1.78 billion. Meanwhile, Switzerland’s Sygnum Bank and Galaxy Digital have partnered with Mill City Ventures to manage a $450 million SUI treasury, marking the most significant such reserve in public markets for the Sui blockchain.
In another example of treasury diversification, Nasdaq-listed VivoPower revealed plans to buy $100 million worth of Ripple shares, thereby increasing its exposure to XRP at an implied cost of $0.47 per token.
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