Given how aggressively President Trump and his sons have embraced the crypto economy, it comes as little surprise that the family’s crypto business has decided to get into the digital asset treasury space.
World Liberty Financial will use ALT5 Sigma Corporation (ALTS) to raise $1.5 billion by selling a combination of 200 million new and existing shares. Then, it will use the proceeds to buy WLFI, the Trump family token.
These transactions will go toward establishing ALT5 Sigma’s WLFI treasury strategy. ALT5 Sigma will now hold 7.5% of the total supply of the WLFI token.
Zach Witkoff, the CEO of World Liberty and son of Steve Witkoff, President Trump’s special envoy to the Middle East, will become chairman of the board of directors at ALT5 Sigma.
Eric Trump, cofounder of World Liberty, will also join the board, and Zak Folkman, World Liberty’s COO, will become a board observer.
Neither company has commented on the new treasury strategy beyond what’s in the press release announcing its launch, but World Liberty mentioned it in a post on X on Monday.
“One small step for mankind, one giant leap for WLFI,” the company said.
ALT5 Sigma is a fintech company that provides next-gen blockchain-powered technologies for tokenization, trading, clearing settlement, payment and custody of digital assets.
Its stock gained 9% after announcing the new WLFI treasury strategy on Monday morning but plunged later in the day to close down 26.4%.
Saylor's playbook
The wave of companies launching crypto treasury strategies are all taking a page out of Michael Saylor’s bitcoin playbook.
Saylor has become known as one of the most famous BTC evangelists by turning his software company MicroStrategy into a bitcoin treasury when he began loading up on the coin in 2020.
MicroStrategy, which now operates under the name Strategy, is the largest corporate holder of bitcoin.
The number of imitators following in Saylor’s footsteps in the U.S. is growing rapidly as crypto regulations have become friendlier under Trump.
The Wall Street Journal recently reported that dozens of companies with “no previous crypto ties” are now pursuing similar strategies — usually with a short-term boost to the share price.
However, Galaxy Digital (GLXY) founder and CEO Michael Novogratz – who is like Saylor a bitcoin evangelist – believes that we may have reached a tipping point with the abundance of crypto treasury companies.
"We’ve probably gone through peak treasury company issuance," Novogratz said during Galaxy Digital’s recent second-quarter earnings call. "The question now is which of the existing companies become monsters."
He added that some of the new entrants into the space could "have a harder time getting oxygen."
Trump Media and Technology (DJT), President Trump’s media company that owns his Truth Social platform, announced last month the launch of its own $2-billion bitcoin treasury.
The BTC holdings now account for about two-thirds of Trump Media’s $3 billion in liquid holdings, according to the company.
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