Trump-Backed Crypto Venture Launches $1.5 Billion Public Treasury for WLFI Token

World Liberty Financial (WLFI), the cryptocurrency venture backed by former U.S. President Donald Trump and his family, has sealed a $1.5 billion deal with Nasdaq-listed fintech firm ALT5 Sigma (ALTS) that cements the WLFI token as a core treasury asset for the public company.

Under the agreement, announced August 11 and closed August 12, ALT5 will acquire 7.5% of WLFI’s total token supply, amounting to 210 million units, through a mix of share sales and token exchanges. The structure includes:

• 100 million ALT5 shares sold to institutional investors at $7.50 each, raising $750 million in cash.
• 100 million ALT5 shares exchanged for WLFI tokens valued at $0.3659 apiece.

Proceeds will support ALT5’s crypto operations, fund further WLFI token acquisitions, repay debt, resolve litigation, and boost working capital.

Leadership Changes

The deal installs WLFI executives into key roles at ALT5:

• Zach Witkoff, WLFI CEO, becomes ALT5 Chairman.
• Eric Trump, WLFI co-founder, joins as Director.
• Zak Folkman, WLFI COO, is appointed Board Observer.

The appointments underscore the Trump family’s expanding influence in digital assets, following disclosures in June 2025 that Donald Trump earned $57.4 million from WLFI token sales.

Strategic Positioning

The move mirrors the “Bitcoin treasury” strategy popularized by Michael Saylor’s Strategy (formerly MicroStrategy), where public companies use stock as a proxy for crypto exposure. However, WLFI diverges from the model by focusing on a proprietary token rather than Bitcoin.

Initially issued as a non-transferable governance asset, WLFI will now be publicly traded and will underpin World Liberty’s broader ecosystem, including a dollar-pegged stablecoin (USD1) and a crypto lending platform.

So far in 2025, digital-asset treasury companies have announced $79 billion in planned cryptocurrency purchases, largely in Bitcoin.

Market Risks and Reactions

Some analysts caution that the model may be riskier for lower-liquidity tokens.

“This works for highly liquid coins like Bitcoin, but altcoins such as WLFI face redemption risks during market stress,” a Bloomberg Markets analyst said. “Investors are betting as much on Trump’s political capital as on token utility.”

WLFI is priced at $0.3659, with $550 million already raised from prior sales. High-profile backers include Tron founder Justin Sun ($30 million) and Web3Port ($10 million).

The SEC has not classified WLFI as a security, meaning it is exempt from certain disclosure obligations, a decision some critics say encourages regulatory arbitrage.

Political Boost

The deal comes amid pro-crypto moves from President Trump’s administration:

• July 2025 signing of a stablecoin regulation bill.
• Trump Media’s addition of $2 billion in Bitcoin to its corporate treasury this year.
• Ongoing Trump family ventures in mining, ETFs, and memecoins.

Recap :

ALT5 is betting that WLFI’s value will grow alongside crypto adoption and the political momentum of Trump’s 2025 campaign. Key risks include liquidity challenges if token trading slows, potential regulatory pushback on leveraged crypto treasuries, and the token’s dependence on Trump’s political fortunes.

Whether political branding can turn a nascent altcoin into an institutional-grade asset now rests with public market sentiment.

Join Telegram Alerts

✓ Finacle insights ✓ Crypto trade signals ✓ Daily market tips

Join Free