ALT5 Sigma has announced a $1.5 billion funding plan to strengthen World Liberty Financial’s (WLFI) digital asset reserves.
According to the press release, the company will issue up to 200 million shares through a registered direct offering and a private placement, while World Liberty Financial will contribute WLFI tokens for the private placement part.
The shares will be sold at $7.50 each, with WLFI tokens funding the private placement. ALT5 Sigma plans to use the money raised to buy more WLFI tokens, start its crypto treasury operations, pay off debts, settle lawsuits, and support daily business activities. The private placement doesn’t need public registration, so selling those shares in the U.S. is more limited.
A.G.P./Alliance Global Partners is the only placement agent for this deal. The registered direct offering follows an SEC-approved shelf registration. The private placement remains exempt from public registration rules. This means shares sold privately may face restrictions on resale.
After the announcement, ALT5 Sigma’s stock dropped by 9%. This shows that some investors are feeling cautious, showing the concerns over the size of the funding and how volatile the crypto market can be.
This move follows a growing trend of public companies investing in crypto and adding it to their corporate treasuries. For example, Strategy holds over 628,000 bitcoins worth about $71 billion. They also filed to raise $4.2 billion to buy more Bitcoin.
Other companies are also investing heavily in crypto. For example, Metaplanet, a Japanese firm, bought 463 bitcoins for $53.7 million. VivoPower, which is also listed on Nasdaq, plans to purchase $100 million in Ripple shares to increase its XRP holdings.
The $1.5 billion fundraising will help ALT5 Sigma and WLFI grow stronger in the crypto world. Together, they aim to build a solid crypto reserve using WLFI’s tokens.
The deal is expected to close by August 12, 2025, once all the usual steps are completed. ALT5 Sigma plans to use the funds to start its crypto operations, manage debts, and keep the business running smoothly. The financing is set to close by August 12, 2025, pending usual conditions.
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