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Trump Family Crypto Venture Raises $1.5B for WLFI Token Treasury

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Trump family-backed World Liberty Financial secures $1.5B via ALT5 Sigma to acquire 7.5% of WLFI token supply.

Soumen Datta

August 12, 2025

The Trump family’s crypto venture, World Liberty Financial (WLFI), secured a $1.5 billion capital raise through blockchain fintech firm ALT5 Sigma Corp. (NASDAQ: ALTS), per Fortune. The funds will be used to acquire approximately 7.5% of all WLFI tokens in existence, establishing a dedicated corporate treasury.

According to Monday’s press release, ALT5 Sigma will sell a total of 200 million shares—split equally between a registered direct offering and a private placement—priced at $7.50 per share. The deal is expected to close on August 12, 2025.

How the Deal Works

ALT5 Sigma’s offering is structured in two parallel components:

  • Registered Direct Offering: 100 million common shares at $7.50 each.
  • Private Placement: 100 million shares at the same price, with payment partially in WLFI tokens.

The $1.5 billion raised will be allocated to:

  • Purchasing WLFI tokens.
  • Funding ongoing company operations.
  • Paying off outstanding debt.
  • Building ALT5 Sigma’s WLFI treasury reserve.

The WLFI token has a fixed total supply of 100 billion, meaning ALT5 will control around 7.5 billion tokens once the purchase is complete.

Leadership Changes at ALT5 Sigma

This capital raise brings new leadership appointments directly from World Liberty Financial:

  • Zach Witkoff – WLFI CEO, will become Chairman of ALT5 Sigma.
  • Eric Trump – WLFI co-founder, will join ALT5 Sigma’s board as a Director.
  • Zak Folkman – WLFI COO, will serve as a Board Observer.
  • Matt Morgan – WLFI advisor, will become Chief Investment Officer.

These additions integrate WLFI’s strategic direction into ALT5 Sigma’s operations, aligning corporate governance with the token treasury strategy.

Why This Strategy Matters

Public companies holding cryptocurrency on their balance sheets—also called crypto treasury companies—have become more common in recent years. The most notable example is MicroStrategy, led by Michael Saylor, which built a large Bitcoin treasury and saw its market capitalization rise in tandem with Bitcoin’s price.

ALT5 Sigma’s WLFI Treasury Strategy follows this model but focuses on DeFi governance tokens rather than Bitcoin or Ethereum. This approach aligns the company’s equity performance with WLFI’s token value and ecosystem growth.

ALT5 Sigma’s Existing Crypto Infrastructure

Founded in 2018, ALT5 Sigma operates as a blockchain-powered fintech company with two main services:

  • ALT5 Pay – a cryptocurrency payment gateway for merchants.
  • ALT5 Prime – an over-the-counter crypto trading platform.

The company also provides custody, clearing, and settlement services for digital assets. Its existing infrastructure allows for sophisticated treasury management without building systems from scratch.

WLFI and the USD1 Stablecoin

World Liberty Financial is already a notable player in decentralized finance (DeFi). The company has raised $550 million from prior token sales and launched USD1, a stablecoin with a reported circulation of $2.1 billion as of April 30. USD1 is marketed toward institutional adoption rather than retail usage, distinguishing it from USDT and USDC.

By acquiring a large stake in WLFI, ALT5 Sigma gains indirect exposure to the USD1 ecosystem, potentially creating integration opportunities between WLFI and ALT5’s payment and trading services.

Following the announcement, ALT5 Sigma’s stock fell 9.8%, according to Google Finance. However, the stock had gained more than 19% over the previous five days, suggesting that investors had priced in expectations ahead of the news.

Risks and Considerations

ALT5 Sigma’s move into a WLFI-dominated treasury comes with notable risks:

  • Market Volatility: WLFI tokens remain subject to price swings typical of governance tokens.
  • Concentration Risk: Holding 7.5% of WLFI’s supply ties company performance to the success of a single protocol.
  • Regulatory Uncertainty: Potential changes in U.S. crypto regulations could affect both token value and treasury strategy.
  • Execution Challenges: Balancing treasury management with existing business operations will require strong operational controls.

The Bigger Trend in Crypto Treasuries

The WLFI treasury move is part of a broader shift where public companies are holding crypto beyond Bitcoin. Ethereum treasury holdings have reached 3.04 million ETH, worth $13 billion, while other firms have begun acquiring assets like Solana and Toncoin.

For example:

  • Verb Technology surged 200% after announcing plans for a Toncoin treasury.
  • Several companies now hold Solana to earn staking rewards.

ALT5 Sigma’s entry into this trend further diversifies the types of tokens represented in public company treasuries.

FAQs

  1. What is World Liberty Financial?
    World Liberty Financial is a DeFi protocol backed by the Trump family, known for its WLFI governance token and USD1 stablecoin.

  2. How many WLFI tokens will ALT5 Sigma own?
    ALT5 Sigma will acquire approximately 7.5 billion WLFI tokens, or about 7.5% of the total 100 billion supply.

  3. Why is ALT5 Sigma raising $1.5 billion?
    The funds will purchase WLFI tokens, pay debt, fund operations, and establish a corporate WLFI treasury reserve.

Conclusion

ALT5 Sigma’s $1.5 billion WLFI token acquisition positions it as one of the largest publicly traded holders of a DeFi governance token. With integrated leadership from World Liberty Financial and an existing fintech infrastructure, the company aims to manage a concentrated crypto treasury while continuing its core services.

This move reflects the growing institutional acceptance of holding digital assets as part of corporate reserves. Whether the strategy delivers long-term shareholder value will depend on WLFI’s market performance, regulatory conditions, and execution by ALT5 Sigma’s management team.

Resources:

  1. ALT5 Sigma Press Release: https://feeds.issuerdirect.com/news-release.html?newsid=6310961390010878&symbol=ALTS

  2. Fortune Report: https://fortune.com/crypto/2025/08/11/world-liberty-financial-1-5-billion-alt5-sigma-alts-crypto-treasury-company-trump/

  3. About World LibertyFi: https://worldlibertyfinancial.com/about

Disclaimer

Disclaimer: The views expressed in this article do not necessarily represent the views of BSCN. The information provided in this article is for educational and entertainment purposes only and should not be construed as investment advice, or advice of any kind. BSCN assumes no responsibility for any investment decisions made based on the information provided in this article. If you believe that the article should be amended, please reach out to the BSCN team by emailing [email protected].

Author

Soumen Datta

Soumen has been a crypto researcher since 2020 and holds a master’s in Physics. His writing and research has been published by publications such as CryptoSlate and DailyCoin, as well as BSCN. His areas of focus include Bitcoin, DeFi, and high-potential altcoins like Ethereum, Solana, XRP, and Chainlink. He combines analytical depth with journalistic clarity to deliver insights for both newcomers and seasoned crypto readers.

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