ALT5 Sigma, a Nasdaq-listed company, is making a strategic move by adopting World Liberty Financial’s native token as a treasury asset. This decision comes as the project’s executives are set to join ALT5 Sigma’s board, signaling a closer partnership between the two entities.
In a recent press release, it was announced that World Liberty Financial, a DeFi venture backed by former President Donald Trump, is participating in ALT5 Sigma’s $1.5 billion capital raise by investing 7.5% of the total WLFI token supply in a private placement. This investment will give ALT5 Sigma ownership of a significant portion of WLFI tokens, solidifying its position in the asset.
Beyond this initial investment, ALT5 Sigma plans to establish a dedicated crypto treasury that holds WLFI tokens. By doing so, the company will become the first corporate entity to hold WLFI tokens as a reserve asset. This move underscores the growing trend of companies diversifying their treasuries with crypto assets, alongside traditional holdings like Bitcoin and Ethereum.
The decision to include WLFI tokens on its balance sheet aligns with earlier statements made by World Liberty Financial’s co-founder, Zak Folkman, who highlighted the interest from public companies in holding WLFI as a treasury asset. This move not only strengthens ALT5 Sigma’s position in the crypto space but also positions WLFI as a valuable asset for corporate treasuries.
In addition to the treasury strategy, World Liberty Financial’s executives will play key roles at ALT5 Sigma. Zach Witkoff, the CEO and co-founder of WLFI, will assume the role of Chairman of ALT5’s board, while Eric Trump will join as a director. Zack Folkman, another co-founder, will serve as a board observer, and Matt Morgan will take on the role of Chief Investment Officer.
Although WLFI tokens are currently not tradable, plans are in place to unlock tokens for trading following a community vote. The project has been actively building its own treasury, acquiring assets like Ethereum and Bitcoin in preparation for future developments.
Overall, the partnership between ALT5 Sigma and World Liberty Financial highlights the growing interest in crypto assets among traditional financial institutions. By adopting WLFI tokens as a treasury asset, ALT5 Sigma is not only diversifying its holdings but also positioning itself at the forefront of the evolving financial landscape.