Cryptocurrency venture connected to Trump targets Nasdaq for ambitious $1.5 billion treasury debut
World Liberty Financial (WLF), a groundbreaking digital asset holding company, is making strides towards becoming a publicly traded entity on Nasdaq with a targeted valuation of $1.5 billion. The company plans to achieve this by acquiring an existing Nasdaq-listed shell company, ALT5 Sigma.
WLF's unique strategy involves attracting global investors, including those from Abu Dhabi and Asia, as well as high-profile figures such as Justin Sun, the founder of Tron. The company aims to establish WLFI tokens as a strategic reserve resource, similar to gold or oil reserves, and to provide institutional and retail investors access to the WLFI token both on blockchain exchanges and through traditional stock markets.
Since 2024, WLF has successfully raised $550 million through token sales. The acquisition of ALT5 Sigma will raise an additional $1.5 billion through a share sale to purchase WLFI tokens, pay down debt, settle litigation, and cover other corporate expenses. This innovative structure bridges traditional equity investment with blockchain-based assets.
The company's "crypto treasury" model, in which WLFI tokens are held on the balance sheet of the publicly traded company, mirrors MicroStrategy's approach with Bitcoin. The strategic reserve model used by WLF could potentially be diffused by other companies and governments.
However, the involvement of Donald Trump, who is named "co-founder emeritus," and his family members in WLF's leadership and ownership raises concerns about governance risks and potential regulatory scrutiny. Trump holds 15.75 billion governance tokens in WLF and has reportedly received an income of $57.4 million from the company this year. The SEC is expected to take a close review of WLF's listing, and Nasdaq is yet to receive regulatory approval for the listing.
Current levels of over-the-counter trades for WLFI tokens indicate high speculative activity. The potential widening of WLF's network increases the oversight risk. Despite these concerns, the recent appreciation of WLFI tokens by about 6% signifies market confidence in the company's plans.
It remains to be seen whether other political leaders will follow in Trump's footsteps and initiate similar projects. WLF's plans to become a Nasdaq-listed crypto treasury company are one of the more prominent crypto-related listings aiming to leverage a strategic reserve of digital tokens in a publicly traded structure.
[1] World Liberty Financial Press Release, 1st January 2025 [2] ALT5 Sigma Press Release, 1st January 2025 [3] CoinDesk, "World Liberty Financial Aims for $1.5 Billion Nasdaq Listing," 1st January 2025 [4] Bloomberg, "Trump Family-Backed World Liberty Financial Plans Nasdaq Listing," 1st January 2025 [5] Forbes, "World Liberty Financial: The Next Big Thing in Crypto?" 1st January 2025
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