Alt5 Sigma Raises $750M to Buy WLFI Tokens, Shares Plunge 75%
Alt5 Sigma raised $750 million at $7.50 per share to buy WLFI tokens at $0.20, directing over $500 million to Trump entities. ALTS shares then dropped over 75% as major hedge funds exited positions.
1. Fundraising and Token Acquisition
Alt5 Sigma completed a $750 million equity raise at $7.50 per share, deploying almost the entire proceeds to purchase World Liberty Financial’s WLFI tokens at $0.20 each, representing a 60% premium over recent private sales.
2. Funds Directed to Founders
From the token acquisition, over $500 million flowed directly to entities affiliated with the Trump family, while $90 million was allocated to Witkoff family interests, reflecting the contractual distribution of WLFI token sale proceeds.
3. Share Price Collapse and Hedge Fund Exits
Following the transaction, Alt5 Sigma’s stock plunged more than 75%, triggering major hedge funds including Point72 and Soul Ventures—which had invested $37 million and $85 million respectively—to liquidate their positions.
4. WLFI Token Price Decline
After the direct purchase by Alt5 Sigma, WLFI token value declined from $0.20 to $0.10 on secondary markets, highlighting significant volatility and raising questions about sustained demand.