Financial institution World Liberty engages ALT5 Sigma, a publicly-traded company, to initiate the launch of a $1.5 billion WLFI token treasury.
In a significant move, ALT5 Sigma Corporation has completed a $1.5 billion private placement offering, led by World Liberty Financial (WLFI). The offering, which aims to close on or about August 12, subject to customary closing conditions, involves the acquisition of approximately 7.5% of the total WLFI token supply [1][2][3].
The funds raised will be utilised for various purposes, including strengthening ALT5’s balance sheet, settling existing litigation, paying off existing debt, funding its business operations, and providing working capital for general corporate purposes [1][2][3].
A notable aspect of this financing is ALT5’s decision to use WLFI tokens as consideration in the private placement. This move underscores ALT5’s commitment to integrating WLFI into its payment and trading infrastructure across global markets. The aim is to facilitate the use of WLFI in retail checkout with instant currency conversion, rapid cross-border B2B payments, and tokenized commodity settlements [2][4].
The offering was priced at market value according to Nasdaq rules and attracted participation from prominent institutional investors and crypto venture capital firms. Kraken was appointed as the asset manager, while A.G.P./Alliance Global Partners served as the sole placement agent [2][3].
The transaction also brought about significant leadership changes. Zach Witkoff, co-founder and CEO of WLFI, will take on the role of Chairman at ALT5. Eric Trump has joined the board as a Director, Zak Folkman (co-founder and COO of WLFI) will serve as a Board Observer, and Matt Morgan has been appointed as the Chief Investment Officer [2][3].
This strategic capital raise positions ALT5 at the forefront of blockchain innovation intersecting with institutional finance and digital asset trading and payment solutions. With the leadership of Zach Witkoff and the backing of World Liberty Financial, ALT5 is poised to make a significant impact in the digital asset market.
[1] The private placement transaction was conducted using $WLFI tokens from World Liberty Financial. [2] ALT5 sold 100 million shares of its common stock at $7.5 per share in the private placement. [3] Some of the capital raised will be used to settle existing litigation, pay existing debt, fund existing business operations, and for working capital and general corporate purposes. [4] ALT5 plans to hold approximately 7.5% of the total supply of $WLFI tokens when the offer closes.
The funds raised from the private placement will be allocated towards strengthening ALT5's financial standing, funding business operations, and providing working capital for general corporate purposes, with a portion reserved for settling existing litigation and paying off existing debt. This strategic decision by ALT5 to use World Liberty Financial (WLFI) tokens in the private placement underscores their commitment to integrating WLFI into their payment and trading infrastructure.
