ALT5 Sigma Unveils $1.5 Billion Crypto Treasury Plan, Shares Drop 26%
ALT5 Sigma announced plans to establish a crypto treasury focused on the World Liberty Financial (WLFI) project, backed by the Trump family. This news led to a 26.42% drop in ALT5's stock price.
Key Details
- ALT5 Sigma aims to raise $1.5 billion to hold WLFI governance tokens.
- Funding will be sourced through a registered direct offering and private placement, selling up to 100 million shares at $7.50 each.
- The private placement will utilize non-transferable WLFI tokens in an over-the-counter transaction.
- Acquiring WLFI directly from World Liberty Financial is currently the only option due to token restrictions.
- If acquisition fails, it may impact the digital asset treasury strategy, requiring asset reallocation.
Stock Performance
- Prior to the announcement, shares were nearing $20 but closed at $6.60 after the news.
- Current trading reflects a decline of approximately 10% over the past week.
Management Changes
- Zach Witkoff will become ALT5’s chairman.
- Eric Trump will join as a board director.
- Zak Folkman will serve as a board observer.
- Matt Morgan will act as chief investment officer.
The WLFI token was launched in October 2024 and is currently non-tradeable, with recent votes allowing for future trade eligibility among select holders.
