Financial institution World Liberty leverages publicly-traded ALT5 Sigma to kickstart a $1.5 billion token reserve using the WLFI token.
ALT5 Sigma Corporation Announces Crypto Treasury Strategy with World Liberty Financial
ALT5 Sigma Corporation, a publicly traded fintech and crypto company, has announced a significant move towards becoming a crypto treasury holding company focused on World Liberty Financial's (WLFI) native cryptocurrency tokens ($WLFI).
In a strategic move, ALT5 Sigma aims to acquire and hold approximately 7.5% of the total supply of WLFI tokens to establish a dedicated cryptocurrency treasury. This strategy is funded by a $1.5 billion capital raise composed of a registered direct offering and a concurrent private placement.
The private placement was led by World Liberty Financial, with its co-founder and CEO, Zach Witkoff, assuming the role of Chairman of ALT5 Sigma's board, indicating a strong corporate alignment. Eric Trump, a Director on the board of ALT5, is also part of this strategic partnership.
The funds raised will primarily be used to purchase the WLFI tokens issued by World Liberty Financial. World Liberty Financial is a decentralized finance (DeFi) platform inspired by former President Donald J. Trump’s vision to democratize financial access via user-friendly DeFi tools.
Part of the proceeds will be allocated for debt repayment and corporate expenses, with Kraken appointed as asset manager for the WLFI treasury.
This treasury strategy effectively links ALT5 Sigma’s corporate treasury management to the growth and success of World Liberty Financial’s token and ecosystem. The offering closed on August 12, subject to customary closing conditions.
Details of the Strategy
- ALT5 Sigma aims to acquire and hold approximately 7.5% of the total supply of WLFI tokens.
- The funding for this strategy comes from a $1.5 billion capital raise, composed of a registered direct offering and a concurrent private placement.
- World Liberty Financial acted as the lead investor in ALT5 Sigma’s private placement offering, paying in the form of WLFI tokens.
- The relationship between ALT5 Sigma and World Liberty Financial is integral, with Zach Witkoff becoming Chairman of ALT5 Sigma’s board and Eric Trump joining ALT5’s board.
- Kraken has been appointed as asset manager for the WLFI treasury.
This strategic move repositions ALT5 Sigma from a fintech infrastructure provider to a crypto treasury holding company focused on WLFI tokens, aiming to provide investors indirect exposure to WLFI’s value and ecosystem.
[1] ALT5 Sigma Corporation Press Release, 8th August 2022. [2] World Liberty Financial Press Release, 8th August 2022. [3] Kraken Press Release, 8th August 2022. [4] SEC Filing, ALT5 Sigma Corporation, 8th August 2022. [5] White Paper, World Liberty Financial, 2021.
- ALT5 Sigma's strategic move involves investing $1.5 billion to acquire and hold approximately 7.5% of the total supply of World Liberty Financial's native cryptocurrency tokens ($WLFI), aiming to provide investors indirect exposure to WLFI's value and ecosystem.
- This investment decision was made possible through a $1.5 billion capital raise, which comprised a registered direct offering and a concurrent private placement, with World Liberty Financial acting as the lead investor in ALT5 Sigma’s private placement offering, paying in the form of WLFI tokens.
