Strategy Inc Shares Jump 26% as Alt5 Sigma Collapses on WLFI Scheme
World Liberty Financial generated $1.4 billion for Trump and Witkoff families via WLFI token sales and a $500 million Abu Dhabi stake sale, driving WLFI tokens down to $0.10 and Alt5 Sigma shares collapsing over 75%. Strategy Inc shares surged 26.1% as investors favored open-market Bitcoin purchases over volatile WLFI tokens.
1. WLFI Token Windfall
World Liberty Financial has generated at least $1.4 billion for Trump and Witkoff families since November 2024, including $1.2 billion in cash and $2.25 billion in paper gains from WLFI token holdings. Disclosures show 75% of token sale proceeds flow to a Trump entity (70% owned by President Trump), 12.5% to Witkoff entities and 12.5% to co-founders.
2. Alt5 Sigma’s Mechanism and Stock Impact
Alt5 Sigma raised $750 million at $7.50 per share and used nearly all proceeds to buy WLFI tokens at $0.20, funneling over $500 million to Trump entities and $90 million to Witkoff entities. Shares of Alt5 Sigma plunged more than 75% to $1.70 while WLFI token prices tumbled to $0.10.
3. Strategy Inc’s Stock Reaction and Outlook
Strategy Inc, which acquires Bitcoin on open markets, saw its shares climb 26.11% as investors contrasted its transparent purchase model with the WLFI token mechanism. The rally underscores growing preference for direct Bitcoin exposure amid heightened scrutiny of private token offerings.