ALT5 Sigma Corporation, a Nasdaq-listed tech firm unveiled a $1.5 billion deal to buy into World Liberty Financial’s (WLFI) digital coin on Tuesday, a crypto project co-founded by members of the Trump family.
The company says the move is meant to “democratize” access to the Trump-backed token by making it available through the regular stock market, rather than forcing investors to navigate crypto exchanges.
ALT5 plans to sell 200 million shares at $7.50 each to raise the $1.5 billion.
Half of that will go toward purchasing $750 million worth of WLFI tokens directly from World Liberty Financial, while the other $750 million will be held in cash to build out ALT5’s WLFI corporate treasury.
The approach echoes the playbook of companies like MicroStrategy, which have turned themselves into quasi-crypto holding firms by parking large amounts of digital assets on their balance sheets.
Eric Trump joins ALT5 Sigma board
Eric Trump is set to take a seat on ALT5 Sigma’s board. Joining him from World Liberty Financial are co-founders Zach Witkoff, who will serve as chairman, and Zak Folkman, who will take on a board observer role.
WLFI adviser Matt Morgan is also stepping in as chief investment officer. The appointments further tighten the links between ALT5 Sigma and the Trump-backed crypto venture.
WLFI originally rolled out its token as a governance tool, but in July, holders voted to open the door to secondary market trading, which is expected to kick off by the end of August.
Under the new setup, the coin carries an initial valuation of about 20 cents, its first official price since launch.
By going through ALT5 Sigma, investors can now gain exposure to WLFI’s price swings without the hassle of managing crypto wallets or exchange accounts, offering a more traditional route into the digital asset.
Trump family deepens crypto push
The deal marks another step in the Trump family’s growing push into cryptocurrency.
World Liberty Financial, launched in the run-up to the 2024 US presidential election, goes beyond its flagship WLFI token, also operating the USD1 stablecoin, which is pegged to the US dollar.
The family has also backed Bitcoin mining operations and other blockchain ventures, all pitched as ways to decentralize finance and make digital tokens more accessible.
Still, not everyone is convinced. Critics point to the sizable WLFI holdings owned by Trump family members and their overlapping roles at both the token issuer and ALT5 Sigma, warning of potential conflicts of interest.
Concerns range from insider advantages to murky governance practices, allegations the White House has denied, saying there’s no conflict involving the President or his family.
Market reaction to the announcement has been choppy. ALT5 Sigma shares swung sharply in the hours around the news, a classic case of “buy the rumor, sell the news.”
Even so, the move highlights rising institutional interest in crypto treasury strategies and notably, in assets beyond Bitcoin with ALT5 Sigma positioning itself as an early adopter of a non-Bitcoin-focused approach.
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