World Liberty Financial, a crypto project associated with the Trump family, is teaming up with tech firm ALT5 Sigma to launch a $1.5 billion WLFI treasury.
ALT5 Sigma Corp. (ALTS) announced Tuesday a $1.5 billion capital raise through a registered direct offering and a concurrent private placement, aimed at initiating a digital asset treasury strategy centered on World Liberty Financial’s WLFI token.
The offering includes 100 million shares priced at $7.50 each in the registered direct component, and an additional 100 million shares at the same price in the private placement, which will be paid in WLFI tokens.
ALT5 said the strategy will position the company to hold approximately 7.5% of WLFI’s total token supply. Proceeds will be used to acquire WLFI tokens, repay outstanding debt, settle litigation, and support general corporate initiatives, according to the company.
As part of the transaction, World Liberty Financial executives will join ALT5’s leadership. WLFI CEO Zach Witkoff will become chairman of ALT5, while Eric Trump will join the board of directors.
In a new interview on CNBC, World Liberty Financial co-founder Zak Folkman argued that the company’s stablecoin USD1, major component of the WLFI ecosystem, is a superior product to other competing stablecoins like Circle’s USDC.
“Unlike our competitor, we have no long-term revenue share deals with any of our distribution partners. So while we’re only 1/30th the market cap of Circle, we’re already far more profitable than they are. That’s because Circe and Coinbase made a deal a long time ago that Coinbase gets 60% of the revenue that comes from Circle, regardless of what happens in perpetuity. USD1 is completely chain and distribution partner-agnostic. So all of the listings, all of the Binance listings, all of the exchange listings that we have were earned business, whereas Circle pays for play.
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