ALT5 Sigma Corporation (NASDAQ: ALTS) has announced a $1.5 billion capital raise through a registered direct offering and a concurrent private placement, both priced at $7.50 per share, totaling 200 million shares.
The proceeds will fund the acquisition of approximately 7.5% of the World Liberty Financial (WLFI) token supply to establish a cryptocurrency treasury, alongside settling litigation, repaying debt, and supporting general operations. The private placement is funded entirely by WLFI tokens from World Liberty Financial, with the registered offering involving institutional and crypto-focused investors.
The deal is expected to close on or about August 12, 2025, subject to customary conditions. Additionally, ALT5 Sigma is undergoing a leadership restructuring. Zach Witkoff, co-founder and CEO of World Liberty Financial, will become chairman of the board.
Eric Trump will join as a director, Zak Folkman, WLFI’s co-founder and COO, will serve as a board observer, and Matt Morgan will take on the role of chief investment officer. These changes align with ALT5’s strategic shift toward integrating blockchain-based assets into its treasury operations.
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The announcement led to a volatile market response, with ALTS shares surging 9.66% on August 11, closing at $8.97, though some reports noted a subsequent 9.8% drop, reflecting investor caution over dilution risks and the volatile nature of cryptocurrency markets.
ALT5 Sigma’s acquisition of 7.5% of WLFI’s token supply positions it as a pioneer in holding non-Bitcoin cryptocurrencies as a core treasury asset. This mirrors a growing trend where companies like MicroStrategy (holding over 628,000 BTC worth $71 billion) and Metaplanet (Bitcoin holdings nearing $1.78 billion) diversify their balance sheets with digital assets.
By choosing WLFI, a token not yet publicly tradable, ALT5 is betting on its future value and adoption, potentially signaling confidence in DeFi (decentralized finance) projects. The move is risky due to WLFI’s untested market performance and the volatile nature of altcoins. Conversely, success could make ALT5 a model for other firms.
The $1.5 billion raise, split evenly between a registered direct offering and a private placement funded by WLFI tokens, allows ALT5 to settle litigation, repay debt, and fund operations while building a crypto treasury. This blended financing structure (fiat and tokens) reduces immediate cash outflows but ties ALT5’s financial health to WLFI’s performance.
The leadership changes and token acquisition deepen ties between ALT5 and WLFI, a Trump-backed DeFi project aiming to democratize finance through user-friendly tools. This partnership could enhance ALT5’s role in the DeFi ecosystem, leveraging WLFI’s USD1 stablecoin and governance token to expand its blockchain-based payment and trading platforms (ALT5 Pay and ALT5 Prime).
WLFI’s token, with $550 million raised in sales and a recent community vote (99.94% approval) to enable trading, gains legitimacy through ALT5’s investment. This could drive demand for WLFI tokens once publicly tradable, potentially boosting its ecosystem and user engagement. The involvement of Eric Trump and the Trump-backed WLFI project ties ALT5 to a politically charged narrative.
By structuring the private placement with WLFI tokens under exemptions from public registration, ALT5 navigates U.S. securities laws creatively. This could invite closer SEC scrutiny, particularly as WLFI tokens transition to tradability, potentially setting a test case for how DeFi tokens are treated under U.S. regulations.
The dual structure of ALT5’s $1.5 billion raise—combining a registered direct offering (cash-based) with a private placement (WLFI token-based)—sets a precedent for hybrid financing models. This approach allows companies to tap crypto markets while maintaining compliance with traditional securities laws.
The WLFI token’s transition to tradability, coupled with ALT5’s treasury strategy, sets a precedent for how DeFi tokens navigate regulatory frameworks. The community vote to unlock WLFI tokens (99.94% approval) and ALT5’s use of unregistered securities for the private placement could influence how regulators view token-based corporate treasuries.
Pulse’s Launch Underscores InfoFi’s Potential to Redefine How Information is Valued and Monetized
AlphaBot launched Pulse, an InfoFi protocol, in July 2025, aiming to set a new standard in the Web3 information finance space. Built by AlphaBot and powered by $BOOST, Pulse is designed to transform data, attention, and user behavior into tokenized assets.
The beta launch featured two projects with a 0.5% + $90K reward pool for participants, known as “Pulsooors.” Pulse operates as a platform on top of InfoFi, focusing on real-time insights and community-driven project discovery. It’s integrated with AlphaBot’s ecosystem, which boasts 2.4M monthly users and 180M+ raffle entries, emphasizing project efficiency and security.
Pulse’s model, built on AlphaBot’s ecosystem with 2.4M monthly users, emphasizes tokenizing attention through its $BOOST-powered reward system. This reinforces the InfoFi trend of converting user engagement into quantifiable, tradable assets, as seen in platforms like Kaito and Cookie.fun.
By rewarding “Pulsooors” for participation, Pulse validates the concept that attention is a valuable commodity, potentially setting a precedent for broader adoption across Web3. Pulse’s focus on real-time insights and community-driven project discovery aligns with InfoFi’s goal of decentralizing information access.
By leveraging AlphaBot’s infrastructure, Pulse enables users to contribute to and benefit from a transparent ecosystem, reducing reliance on centralized platforms. This could inspire other InfoFi projects to prioritize community governance and decentralized data aggregation. Pulse’s use of blockchain for transparency and AI for data processing mirrors the technological backbone of leading InfoFi platforms like Kaito and Bubblemaps.
This integration enhances the ability to analyze and monetize unstructured data, such as social sentiment and on-chain activity, further solidifying InfoFi’s role as a bridge between AI, blockchain, and financial incentives. Pulse’s launch highlights ongoing InfoFi challenges, such as skewed reward distribution and lack of long-term sustainability, as noted in X posts.
These issues could prompt the industry to refine incentive mechanisms to ensure equitable value distribution and prevent engagement farming, which risks diluting high-quality contributions. With AlphaBot’s established user base and Pulse’s $90K+ reward pool, the project amplifies InfoFi’s visibility in the Web3 space.
This could attract more retail and institutional participants, boosting the global blockchain analytics market, projected to reach $14.31 billion by 2030. Pulse’s beta launch with two projects and a novel reward system pushes InfoFi projects to innovate beyond traditional leaderboards.
As noted on X, competition among InfoFi campaigns requires new layers of rewards to attract influential voices, potentially leading to more sophisticated incentive models across the sector. By rewarding participants for contributing to project attention, Pulse aligns with InfoFi’s ethos of empowering creators and users.
This approach, similar to Kaito’s Yaps or Cookie.fun’s Snaps, democratizes value distribution, encouraging more users to engage in content creation and community building, thus expanding the InfoFi ecosystem. Pulse’s integration with AlphaBot’s ecosystem suggests potential synergies with DeFi and SocialFi, as InfoFi platforms increasingly intersect with other Web3 sectors.
For instance, reputation scoring systems like those in Ethos Network could complement Pulse’s attention-based rewards, creating new use cases for DeFi lending or community governance. Pulse’s launch underscores InfoFi’s potential to redefine how information is valued and monetized in Web3. However, its success depends on addressing scalability, liquidity, and product-market fit, as highlighted by industry analyses.
As Pulse and similar projects evolve, they could drive InfoFi toward becoming a cornerstone of the decentralized economy, fostering a more transparent, equitable, and data-driven financial landscape.