ALT5 rebounds after $1.5B World Liberty Financial token plan. Trump-backed project eyes top ten crypto spot with USD1 stablecoin’s growing adoption.
ALT5 Sigma’s $1.5B plan to acquire World Liberty Financial’s governance token sent its stock down 26% before rebounding. Analysts say the Trump-backed project could still reach the top ten cryptocurrencies.
ALT5’s Funding Plan Targets World Liberty Financial Token Acquisition
ALT5 Sigma’s $1.5 billion plan to acquire World Liberty Financial’s governance token initially sent its stock down 26% before rebounding. The Nasdaq-listed fintech firm, trading under “ATLS,” announced it would become the first publicly traded company to hold WLFI, a governance token backed by the Trump family.
The company plans to raise $1.5 billion through a registered direct offering and a private placement, selling up to 100 million shares at $7.50 each. The private placement will involve WLFI tokens, which remain non-transferable and can only be acquired directly from World Liberty Financial. In a regulatory filing with the U.S. Securities and Exchange Commission (SEC), ALT5 outlined potential risks.
It stated that failure to secure WLFI on favorable terms or at all could halt its digital asset strategy. The company warned that this may also force a reallocation of treasury assets.
ALT5 Stock Swings as World Liberty Financial Treasury Plan Triggers Leadership Changes
The market reaction was swift. ALT5 shares, which had been trading near $20 and had more than doubled earlier, plunged 26.42% to $6.60 by Monday’s close. The share has since bounced back to about $7. This is approximately a 17% increase in the last day.
This reversal occurred in spite of a great pre-announcement momentum. This reflects investor uncertainty about the risks and schedule of the treasury strategy. The treasury plan will also reshape the company’s leadership structure.
WLFI co-founder Zach Witkoff will take over as chairman of ALT5. Eric Trump will join the board as a director, while Zak Folkman will act as a board observer.
Matt Morgan, CEO of Blockstreet, will serve as chief investment officer. The $1.5 billion treasury initiative is part of the Trump family’s broader push into cryptocurrency.
Beyond WLFI, Donald and Melania Trump launched their own memecoins, TRUMP and MELANIA, earlier in 2025. Eric Trump and Donald Trump Jr. have backed World Liberty Financial while also investing in American Bitcoin, a mining venture with Hut 8.
Trump Media’s Bitcoin Move and WLFI’s Path Toward Broader Market Access
Trump Media and Technology Group, which operates Truth Social, recently added $2 billion in Bitcoin to its balance sheet as part of a shift toward crypto assets. WLFI holders have also strongly supported expanding the token’s market reach.
In July, a proposal to make WLFI tradable received 99.94% approval from roughly 20,900 votes. Supporters cited expectations of higher prices and the chance to align investments with the Trump brand. Broader trading access is expected to follow the Token Generation Event later this year.
WLFI, launched in October 2024, functions as the governance and DeFi backbone for the USD1 stablecoin. Fully backed by U.S. Treasuries and cash, USD1 is regulated under the recently passed GENIUS Act and designed for cross-chain applications. The initial mint made it the fifth-largest stablecoin by market capitalization from the outset.
Analyst Sees WLFI and USD1 Achieving Major Market Expansion
Crypto analyst Virtual Bacon has called WLFI more than just a memecoin. According to him, it is the “official Trump DeFi play” with real-world utility.
Currently, pre-market trading on Whale Market values the token at $0.23, implying a $23 billion valuation. Bacon projects that demand could escalate rapidly after the Token Generation Event (TGE), potentially pushing the token toward $1.
USD1 plays a significant role in institutional finance, and this could affect WLFI’s growth. USD1 offers institutions a blockchain-based vehicle to purchase Treasuries, creating a bridge between traditional finance and decentralized infrastructure. Bacon stated that two or three additional MGX-level transactions would push USD1 to become one of the top three stablecoins. Therefore, its market cap could be in excess of $100 billion by the end of 2025.
World Liberty Financial’s Tradability Vote Lays Foundation for TGE
In July 2025, WLFI holders voted to permit the token to be traded. The vote would also enable the token to be exchanged via peer-to-peer transactions and ultimately a secondary market.
In the meantime, the trading is limited to an exclusive ‘trade elite, with wider access after the token generation event (TGE). The event is tentatively set for either September or early October 2025.
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