WLFI invests 7.5% of token supply to boost ALT5 Sigma’s treasury bid

Nasdaq-listed ALT5 Sigma is set to adopt World Liberty Financial’s native token as a treasury asset as it taps the project’s executives to join its board.

Summary

• World Liberty Financial will invest 7.5% of the total WLFI token supply in ALT5 Sigma’s $1.5 billion capital raise.
• ALT5 Sigma will adopt $WLFI as a treasury asset, creating the first corporate treasury to hold the token.

According to a Monday press release, the Trump-backed DeFi venture World Liberty Financial is driving a $1.5 billion capital raise at ALT5 Sigma by contributing 7.5% of the total $WLFI token supply in a private placement. The announcement comes on the heels of earlier reports that World Liberty Financial was planning a $1.5 billion fundraising round to establish a public company holding its native tokens.

This investment will give ALT5 Sigma ownership of that portion of $WLFI tokens once the deal closes, boosting its broader stake in the asset. But beyond this initial investment, the company is targeting a larger role for the native token.

WLFI scores place on corporate balance sheet

According to the company, the proceeds from the offering will go towards establishing a dedicated crypto treasury that holds WLFI tokens. The move will make ALT5 Sigma the first company to do so, establishing WLFI as a reserve asset.

The treasury strategy announcement follows the company co-founder Zak Folkman’s remarks in June that more public companies are expressing interest in holding WLFI as a treasury asset.   

“There has been a lot of interest from several public vehicles who want to use WLFI to be held in their treasuries,” he said at the time. 

ALT5 Sigma’s bid will now add WLFI to the growing list of crypto treasury assets, led by Bitcoin (BTC) and Ethereum (ETH). Other assets like BNB (BNB), SUI (SUI), have also been trapped across various institutions, as more crypto assets land on corporate portfolios.

Alongside the financial backing, WLFI’s executives will take key roles at ALT5. Zach Witkoff, WLFI’s CEO and co-founder, will become Chairman of ALT5’s board, while Eric Trump will join as a director. Co-founder Zack Folkman will also join ALT5 as a board observer, while Matt Morgan will step in as Chief Investment Officer.

WLFI tokens are currently not tradable by investors. However, following a near-unanimous vote by the token holders last month, tokens sold to early backers are scheduled to unlock for trading soon, with the release timeline for the remaining tokens from the total 100 billion supply to be determined by a second community vote.

Meanwhile, WLFI has been separately building its own treasury, acquiring millions worth of assets like Ethereum (ETH) and Bitcoin (BTC) over the past few months.