ALT5 Sigma Corporation has announced its intention to sell 200 million shares to fund World Liberty Financial (WLFI), a cryptocurrency project backed by members of the Trump family.
Deal Structure
ALT5 Sigma plans to split the deal into two equal parts, with a registered direct offering and a private placement. Each part will cover 100 million shares at $7.50 each, totaling $750 million per transaction. The offering is expected to close on Tuesday.
World Liberty Financial Plans
Reports indicate that WLFI intends to create a publicly traded company to manage its native WLFI tokens, with a fundraising target of $1.5 billion. The deal structure is still being finalized, but major tech and crypto investors are already being approached.
Market Reaction to the Deal
Shares of ALT5 Sigma dropped 9.8% on Monday, reversing a 19% gain over the previous five days. This may suggest typical investor behavior, following the 'buy the rumor, sell the news' pattern.
The ALT5 Sigma deal highlights a growing trend among public companies to establish large-scale cryptocurrency treasuries, further exacerbated by increasing corporate holdings in Ether and other altcoins.
