ALT5 Sigma Corporation agreed to sell 200 million shares of common stock for $1.5 billion to jumpstart its World Liberty Financial (WLFI) corporate treasury.
According to the Monday ALT5 Sigma announcement, the company has registered a direct stock offering for 100 million shares and a concurrent private placement for an additional 100 million shares. Both offerings are conducted at $7.50 per share, or $750 million each.
The announcement follows reports that World Liberty Financial (WLFI), a Trump family-backed crypto venture, is exploring the creation of a publicly traded company to hold its WLFI tokens. The firm is targeting roughly $1.5 billion in fundraising and aims to close the offering on Tuesday.
According to a Form 8-K filed with the US Securities and Exchange Commission, ALT5 Sigma receives $750 million worth of WLFI tokens from World Liberty Financial in exchange for one million shares and 99 million pre-funded warrants at an exercise price of $0.01. The company won’t be able to issue these shares until it has raised its authorized share limit.
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All in on WLFI
The other $750 million will be paid in cash for the registered direct sale. Still, the company also announced plans to spend this money on growing its WLFI corporate reserve.
ALT5 Sigma shareholders appear to have taken the “buy the rumor, sell the news” adage seriously. Google Finance data shows that the stock has fallen 9.8% at the time of publication. Still, the stock has also risen by over 19% in the last five days.
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The rise of non-Bitcoin corporate treasuries
ALT5 Sigma is the latest company in an ongoing trend to create crypto treasury companies, which is slowly extending to digital assets beyond Bitcoin (BTC). A Monday report showed that the total Ether (ETH) held by companies with crypto treasuries has risen to 3.04 million ETH, worth $13 billion, as the cryptocurrency’s price surged past $4,300.
Ethereum co-founder Vitalik Buterin has supported the rise of Ether treasury companies but warned against excessive leverage. Other companies have been expanding into altcoin treasuries as well.
Recent examples include public companies acquiring Solana to capture a share of the blockchain’s staking rewards. Also, this month, Verb Technology Company’s stock skyrocketed more than 200% intraday after it announced a $558 million deal and plans to become the first corporate Toncoin treasury.
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