ALT5 Sigma Corporation, a Nasdaq-listed digital asset treasury company, has received board authorization for a dual-pronged financial strategy involving a significant share repurchase program and increased exposure to the WLFI token. The board approved the repurchase of up to 50 million shares, representing approximately 40% of all outstanding shares, with a total program value of up to $100 million.
Concurrently, the company has entered into a $15 million debt-financing agreement with World Liberty Financial (WLF) to serve as an initial catalyst for these initiatives. ALT5 Sigma plans to leverage its $1.6 billion balance sheet to fund both the buyback and additional purchases of WLFI tokens on the open market. The company is already one of the largest holders of WLFI, with a treasury of roughly 7.3 billion WLFI tokens valued at an estimated $1.5 billion.
CEO Tony Isaac justified the aggressive buyback, stating the company's stock is trading at a "steep discount" to its net asset value, which he estimates at roughly 70% below intrinsic value. "Buying back our stock at such a bargain purchase price is a great decision which will add value to our shareholders," Isaac said. He also emphasized the leverage of their WLFI holdings, noting, "every penny of appreciation in our $WLFI token holdings will add tens of millions of dollars to our balance sheet."
The move underscores ALT5's deepening partnership with World Liberty Financial, the cryptocurrency venture co-founded by Eric, Don Jr., and Barron Trump. WLF has granted ALT5 a waiver to leverage its digital asset holdings for financing. The partnership is also linked to the growth of the USD1 stablecoin, part of the World Liberty ecosystem, which has seen its market capitalization surge from $3.4 billion to over $5 billion in less than three weeks.
Despite the announcement, ALT5 Sigma's share price experienced volatility. It traded at $2.52 upon the news but later declined to $2.11. The company stated that the commencement of the buyback program is subject to applicable securities regulations and market conditions.
