Why did ALT5 announce the WLFI treasury reserve plan?

Deng Tong, Golden Finance

On August 11, 2025, ALT5 Sigma Corporation announced a registered direct offering and concurrent private placement totaling $1.5 billion to launch the treasury strategy for World Liberty Financial (WLFI). This is the third company to announce the launch of the WLFI treasury strategy, following World Liberty Financial and BigStrategy Inc.

What business does ALT5 Sigma Corporation mainly engage in? What are the benefits of the "strong alliance" between ALT5 Sigma Corporation and WLFI? Who else has announced the WLFI treasury reserve plan?

1. What business does ALT5 Sigma Corporation mainly engage in?

ALT5 Sigma Corporation is a financial technology company that provides next-generation blockchain-based technology for the tokenization, trading, clearing and settlement, payment, and secure custody of digital assets.

ALT5 Sigma, Inc. (a wholly owned subsidiary of ALT5 Sigma Corporation) was established in 2018. ALT5 Sigma, Inc. provides two main platforms for clients through its subsidiaries: "ALT5 Pay" and "ALT5 Prime". ALT5 Pay is a cryptocurrency payment gateway that allows merchants to choose to automatically convert to fiat currency or receive payments in the form of digital assets; ALT5 Prime is an electronic over-the-counter trading platform that allows registered and approved clients to buy and sell digital assets.

The company is considering spinning off its biotechnology business, which will continue to operate under the name "Alyea Therapeutics Corporation."

2. Announcement Details

• ALT5 Sigma Corporation will issue and sell up to 100 million shares of common stock at a price of $7.50 per share through a registered direct offering;
• The total fundraising for this issuance is expected to be approximately $1.5 billion, and the net proceeds from the issuance will be used to acquire $WLFI tokens.

The specific content of the announcement is as follows:

ALT5 Sigma Corporation (NASDAQ: ALTS)(FRA: 5AR1) (hereinafter referred to as "the Company" or "ALT5") today announced that the Company has reached a final agreement to issue and sell up to 100 million shares of common stock at a price of $7.50 per share through a registered direct offering (or alternative common stock equivalents). Before deducting placement agent fees and other issuance expenses, the total funds raised from this issuance are expected to be approximately $1.5 billion. The securities issued in the private placement will be funded in the form of $WLFI tokens from World Liberty Financial, Inc. ("WLFI"). This issuance is priced at market price according to Nasdaq rules.

World Liberty Financial, Inc. is the leading investor in the concurrent private placement, with participation from some of the largest institutional investors and well-known crypto venture capital firms globally.

The issuance is expected to be completed around August 12, 2025, subject to customary closing conditions. The company plans to use the net proceeds from this issuance to acquire $WLFI tokens, establish the company's cryptocurrency fund operations, address existing litigation, repay existing debts, support the company's ongoing business operations, as well as for working capital and general corporate purposes.

AGP/Alliance Global Partners is the sole placement agent for this issuance.

The securities to be issued in this direct registration are offered and sold by ALT5 pursuant to the "shelf" registration statement (including the base prospectus) on Form S-3 (Registration No. 333-289176). This statement was previously submitted to the U.S. Securities and Exchange Commission ("SEC") on August 1, 2025, and declared effective by the SEC on August 8, 2025. The securities proposed to be issued in this direct registration will only be offered through a prospectus supplement, which forms part of the registration statement. The final prospectus supplement relating to this direct registration and the accompanying base prospectus will be submitted to the SEC and will be available on the SEC website.

The sale and offering of the securities in the above private placement is not a public offering and has not been registered under the revised Securities Act of 1933 (the "Securities Act") Section 4(a)(2) and/or under the D regulations promulgated under that Act Section 506(b). Therefore, unless exempt from the registration requirements of an effective registration statement or the registration requirements of the Securities Act and applicable state securities laws, the securities in the private placement may not be resold or transferred in the United States.

3. Benefits of "Strong Union"

Zach Witkoff, Co-Founder and CEO of World Liberty Financial, Inc., will become the Chairman of the Board of ALT5; Eric Trump will become a Board Member; Zak Folkman, Co-Founder and COO of World Liberty Financial, will become a Board Observer; WLFI advisor Matt Morgan will become its Chief Investment Officer.

The most intuitive benefit brought to ALT5 Sigma Corporation by the strong alliance is the positive impact on short-term stock prices.

As soon as the news of ALT5 Sigma Corporation creating the WLFI treasury reserve was released, its stock price surged rapidly, reaching a high of $9.25, but then plummeted sharply to a low of $6.31, a decline of 31.78%.

Secondly, WLFI is deeply tied to Trump, and ALT5 Sigma Corporation holds a large amount of WLFI, with core personnel from the WLFI project joining them, which means ALT5 Sigma Corporation is closely aligned with the president. Currently, as the U.S. cryptocurrency policy is becoming more relaxed, companies that are deeply connected with Trump’s camp are more likely to capture policy trends in a timely manner and even gain some influence in the policy-making process, allowing them to strategically position their businesses in accordance with policy directions and avoid potential regulatory risks.

In addition, ALT5 Sigma Corporation is equivalent to directly inviting the President of the United States for endorsement, as Trump's political and business influence is the ace in the hole for ALT5 Sigma Corporation to expand its business.

For WLFI, WLFI has found a shell company that is already listed on NASDAQ.

First, WLFI's move can accelerate the financing process. The purchase of WLFI tokens with a capital amount of $1.5 billion will directly boost the price of WLFI and bring long-term investor confidence to WLFI. It can help World Liberty Financial attract a large amount of funds in a short period for token ecosystem construction, market expansion, or reserve fund replenishment, which is in line with the idea of quickly financing with ALT5 Sigma Corporation to promote the WLFI treasury strategy.

Secondly, the use of shell companies can better adapt to regulatory requirements. ALT5 Sigma Corporation strictly adheres to Nasdaq rules and the relevant regulations of the U.S. Securities and Exchange Commission during the issuance process, and its registration for direct issuance is based on a valid registration statement, which provides a compliant basis for WLFI to go public through a shell company.

4. Who else has announced the WLFI treasury reserve plan?

The company that announced the WLFI treasury reserve plan is BigStrategy Inc.

BigStrategy Inc. is an innovative company focused on the blockchain sector, operating micro-strategy projects on the BSC chain, dedicated to building a unique cryptocurrency financial ecosystem. BigStrategy Inc.'s positioning is as an "on-chain company of the WLFI micro-strategy model," emphasizing the reserve of WLFI and USD1.

On August 5, 2025, the BSC chain micro-strategy project BigStrategy Inc. announced on social media that it has reserved over 2 million WLFI tokens and plans to continue increasing its holdings. The company stated that this is a long-term capital allocation strategy aimed at creating real value for shareholders. It emphasized that this move is not based on speculation, but rather on strict discipline and continuous accumulation to achieve value creation.

Summary

Nick Tomaino, the founder of the crypto venture capital firm 1confirmation, once stated: "Today, every holder is looking for treasury companies to save their assets. However, the treasury company's model only works when the market generally believes that the cryptocurrency has a value storage function. No one wants a group of fraudulent insiders to profit. This is precisely where the difference between tokens that can neutrally serve as a store of value and so-called 'company tokens' is most significant."

Vitalik has also pointed out that he supports the so-called Ethereum treasury company, but warned that if not handled properly, this trend could evolve into an "over-leveraged game."

The cryptocurrency treasury reserve plan has indeed revived some companies, but for many, it has only led to extreme fluctuations in stock prices. The drastic volatility in stock prices, regulatory uncertainties, and the fundamental differences between "company tokens" and true value storage tokens all remind the market that the cryptocurrency treasury reserve plan is not a one-size-fits-all solution, and the risks and challenges lurking behind it cannot be ignored.

For enterprises, a short-term capital frenzy may lead to an increase in stock prices, but how to find actual value anchors in the real world is a question that cryptocurrency treasury companies should seriously consider; for the cryptocurrency industry, the prevalence of cryptocurrency treasury reserves is an essential stage in the industry's development. It is an urgent task for practitioners to eliminate the labels of "bubble" and "speculation" that cryptocurrency treasury enterprises bring and to turn the widespread skepticism into a genuine opportunity for industry innovation.