Summary ALT5 runs a B2B crypto-infrastructure/CaaS platform serving banks, brokers, and merchants with trading, payments, custody, and tokenization via APIs. Their $750 million WLFI token private placement with World Liberty Financial, plus warrants, means WLF can eventually own about 52% of ALT5 Sigma Corporation. Pre-deal shareholders were diluted from 21.6 million shares to 109.6 million, and to 9.5% ownership on a 228.6 million fully diluted share base. In my view, ALTS has mostly become a play on WLFI’s token price going forward. Yet, the token itself has an unclear cash-flow model. Still, investors bullish on the WLFI token may find ALTS compelling due to its implied discount. But, on balance, I feel a neutral stance for ALTS makes sense. ALT5 Sigma Corporation ( ALTS ) is a B2B crypto-infrastructure company that provides tokenization, trading, payments, and custody platforms. Its main customers include banks, brokers, and large merchants. ALTS offers crypto-as-a-service (CaaS) with API plugins for crypto products without requiring building wallets, trading engines, compliance stacks, or custody systems. ALTS agreed to a $750 million WLFI token private placement with World Liberty Financial that can give it around 52% of the company if it fully exercises its warrants. Thus, ALTS is now a bet on the WLFI token, so unless you’re bullish on that token, then ALTS is not worth the risk at these levels. Crypto-As-A-Service ALT5 Sigma Corporation is a small-cap fintech company that provides crypto-as-a-service infrastructure aimed mainly at institutional clients. ALTS was founded back in 2018 and is headquartered in Las Vegas, Nevada. Broadly speaking, ALTS provides technology for organizations that allows its customers to integrate with cryptocurrencies and stablecoins. The company also offers tokenization services to generate digital tokens on a blockchain. Source: ALT5 Sigma Corporation Website. Retrieved November 2025. As a quick overview, ALTS provides tools and platforms for trading crypto and software for clearing and settlements. For merchants, it allows them to accept crypto as payment and safekeeping of digital assets for customers, including secure wallet infrastructure. In that sense, crypto-as-a-service is a back-end crypto infrastructure business that allows banks, brokers, payment companies, and large merchants to plug into ALTS’ system (via APIs) and receive crypto functionalities. All of this without the need to build complex and expensive full in-house systems. Essentially, if a bank wants to let users buy and sell cryptocurrencies, instead of creating an exchange, they can simply call ALTS’s APIs. Alternatively, if a payment processor or online store wants to accept USDT, ETH, or BTC at checkout, it can instantly convert those coins into USD or EUR through ALTS’s payment API. In the same way, ALTS provides trading, pricing, and custody on behalf of a broker or a wealth platform. Source: ALT5 Sigma Corporation Website. Retrieved November 2025. Moreover, ALTS’s key platforms and products include ALT5 Prime and ALT5 Pay that target B2B use cases rather than direct retail trading. ALT5 Prime is a platform for institutional and professional customers to trade and manage digital assets. This means ALTS offers liquidity, execution, and custody services as well. As for ALT5 Pay, this is a crypto payment gateway that lets merchants accept crypto and auto-convert to fiat, with plugins like WooCommerce, checkout widgets, and APIs. How One Deal Reshaped ALTS More recently, in August 2025, ALTS signed the Securities Purchase Agreement [SPA] with World Liberty Financial, Inc. The deal consisted of a private placement of $750 million in WLFI tokens at $0.20 each. To honor the private placement agreement, ALTS had to get the approval of shareholders across several related proposals. By October 2025, shareholders had voted and approved those proposals. The first proposal was about the issuance of 119 million common shares upon exercise of the pre-funded and common stock purchase warrants held by World Liberty Financial, Inc. This was necessary to remain in compliance with NASDAQ Rule 5635 . This rule is a set of requirements that tells NASDAQ-listed companies when they must get shareholder approval before issuing new stock or equity issued for acquisitions and similar deals. In the ALTS’ case, Rule 5635 is relevant on two fronts. Source: ALT5 Sigma Corporation Website. Retrieved November 2025. You see, ALTS previously received $750 million in WLFI tokens (associated with WLFI) and, in exchange, agreed to issue a block of equity that exceeds the 20% threshold of outstanding shares. Therefore, the transaction had to be approved by shareholders for that reason. Also, under the same Rule, if World Liberty Financial exercises all those warrants, it could own 52% of ALTS common stock. So, if that were to happen, it would basically become a change of control scenario, which is another condition that typically requires a shareholder vote. The second proposal was to allow the Board to name a second director, elected by the Lead Investor, which reinforces its influence. This appointment may also be considered part of the change of control, so it needs shareholder approval. The third proposal is for authorizing the increase of the number of common shares from 200 million to 2,000 million. This is more of a housekeeping move to ensure ALTS has a cushion of authorized shares for future financings, acquisitions, stock-based incentives, and additional digital-asset purchases. Having said that, it has been noteworthy that ALTS quickly restructured its top management. From November 21 to 25, the board removed the CEO, the CFO, and the COO, and accepted the resignation of one independent director. On paper, all these changes aligned with the current board’s strategy. In practice, ALTS installed Tony Isaac as the new acting CEO and Steven Plumb as the new CFO. Tony Isaac continues as President and Director. But, interestingly, this restructuring has concentrated more power within a smaller group that includes Tony Isaac, Steven Plumb, and Zachary Witkoff (WLFI’s cofounder). Furthermore, in September 2025, a Seeking Alpha news report by Max Gottlich analyzed the ALTS-WLFI deal structure. The report described the transaction as a “circular deal” that benefits the Trump family. Source: ALT5 Sigma Corporation Website. Retrieved November 2025. In any event, as far as ALTS is concerned, the bottom line is that ALTS has $750 million in cash and $750 million in WLFI tokens. I also believe ALTS used a portion of the $750 million in cash it received to purchase more WLFI tokens (more on this later). And, in the process, ALTS pre-raise shareholders got diluted from 21.6 million shares outstanding to 109.6 million shares outstanding post-deal. On top of that, WLFI also received 99.0 million pre-funded PIPE warrants and 20.0 million stock purchase warrants. That means ALTS' fully diluted shares outstanding are actually closer to 228.6 million (109.6m + 99.0m + 20.0m). Therefore, this transaction also implies that the original shareholders with 21.6 million shares outstanding now own just 9.5% of the fully diluted shares outstanding (21.6m / 228.6m). The report mentioned that this deal puts entities linked to the Trump family on “ both sides ” of the trade. After all, a Trump family-controlled entity ( DT Marks DEFI ) reportedly owns a stake in WLFI, which makes it proportionally beneficiary of the WLFI token sale proceeds (to ALTS). And World Liberty Financial can own up to 52% of ALTS if all warrants are exercised, which the recent shareholder vote now allows. Source: ALT5 Sigma Corporation Website. Retrieved November 2025. Naturally, this deal means that ALTS now has substantial exposure to WLFI tokens. These tokens can potentially become very valuable, as they’re the governance token for the WLFI ecosystem. This governance token has a say on items like protocol parameters or treasury decisions for the ecosystem. This could become a sort of proxy play to USD1’s stablecoin adoption. In theory, if this stablecoin becomes widely used, then the ecosystem will generate considerable fees. And WLFI could become proportionally valuable compared to how much value and fees this on-chain mechanism generates. However, remember that ALTS only owns around 7.5% of WLFI’s fully diluted token supply. So, in practice, ALTS pre-transaction shareholders got diluted down to 9.5% and received 7.5% of WLFI’s token governance in exchange. Valuation And Risk Analysis Now, from a valuation perspective, ALTS trades at $1.87 PPS . Since there are 228.6 million shares outstanding, that implies a fully diluted market cap of $427.5 million. In my view, it’s prudent to use the fully diluted market cap in this case because there’s essentially little stopping WLFI from exercising its warrants (aside from the NASDAQ’s change of ownership rule). So, the best way to think about ALTS’ valuation is that you’d be buying into a 9.5% stake of the fully diluted entity. Source: ALTS press release on token holdings. Moreover, we don’t have an updated Q3 2025 10-Q report, so we have to do some speculative calculations. Basically, as of Q2 2025, ALTS was doing $6.4 million in quarterly revenues and -$2.1 million in operating losses. Their pre-transaction balance sheet held $9.6 million in cash and short-term investments, against $22.7 million in financial debt (aside from other operating liabilities). And its book value stood at $33.1 million. With that in mind, post-transaction ALTS essentially added $750 million in cash and $750 million in WLFI tokens at $0.20 per token (i.e., 3.75 billion WLFI tokens). However, we later learned that ALTS increased its WLFI token holdings to 7.28 billion tokens. So, I infer ALTS used a portion of the $750 million in cash it received to purchase 3.53 billion WLFI tokens. We don’t know the average price of those purchases, but I’ll assume it was $0.18 as cited in the press release. That would imply ALTS spent around $635.4 million out of the $750 million in cash it received. So, I add the remaining $114.6 million to its Q2 cash balances and estimate its liquid resources are probably closer to $124.2 million. And today, each WLFI token trades at $0.16 , meaning ALTS’ WLFI token holdings are worth approximately $1.2 billion. Source: CoinGecko . Token: WLFI. I also estimate ALTS burned through $5.2 million during Q2 2025 . Note that I got this figure by simply adding its quarterly cash flows from operations and CAPEX. And if we annualize that number, it suggests a yearly burn rate of roughly $20.8 million. So, pre-transaction, that would have translated to a concerning cash runway of just 1.8 quarters. Post-transaction, ALTS' cash runway is probably closer to 6.0 quarters, excluding the mark-to-market value of its sizeable WLFI token treasury. But note that WLFI’s circulating token supply is about 27.2 billion, so ALTS owns 26.8% of the circulating supply. And the token’s trading volume is $128.6 million, so if ALTS ever wants to liquidate its position, it would probably realize a much lower value than the mark-to-market figure of $1.2 billion. Also, I would imagine that if ALTS discloses its selling WLFI tokens, it would probably hurt investors’ confidence in the token itself. Plus, the lower the WLFI token trades, the lower its trading liquidity by extension (at ceteris paribus). Naturally, I doubt ALTS plans on selling a substantial amount of its WLFI tokens any time soon, especially since it’s part of its CaaS strategy. Nevertheless, putting it all together, it’s challenging to make a compelling bullish case for ALTS at this point. After all, the WLFI token itself doesn’t directly generate any cash flows. All we know is that the most recent USD1 attestation report ( WWLFI's native stablecoin ) mentions there are around $2.7 billion worth of USD1. In theory, WLFI could benefit from fees or spreads within this ecosystem, but there are no disclosed figures about this so far. Thus, in practice, ALTS has a huge amount of speculative WLFI tokens that don’t generate any disclosed cash flows. It also appears highly illiquid relative to ALTS’ mark-to-market treasury. Source: Bitget Wallet. WLFI Token Unlock Schedule. So, if the WLFI token continues to depreciate ( down 31.6% over the past year), then ALTS stock will probably trend lower as well. Alternatively, if you’re truly bullish on the WLFI token and its ecosystem, then I do believe ALTS is the best way to express that view. The market is clearly discounting its WLFI token value if we value ALTS’ treasury mark-to-market. And if the WLFI token succeeds and appreciates, then the market should reprice ALTS’ treasury closer to its mark-to-market value. In that hypothetical bullish scenario, ALTS’ $427.5 million fully diluted market cap would seem like a bargain today. Still, I think this scenario is highly speculative, especially after considering the overhang on the WLFI token supply that’s yet to be unlocked. Conclusion: Not Worth The Risk Overall, ALTS has gone through a major restructuring event. It’s now mostly a bet on crypto defi and CaaS. They’ve also partnered with WLFI, which already has a $2.7 billion stablecoin ecosystem with USD1. However, they haven’t disclosed any concrete figures about how WLFI will generate cash flows for tokenholders like ALTS. Effectively, this means that ALTS’ main asset can only benefit shareholders if it holds its value or appreciates. Yet, I have my doubts about that because WLFI is a thinly traded crypto with the vast majority of its max supply still waiting to be unlocked. Also, ALTS can quickly change its ownership if the WLFI company fully exercises its warrants, further diluting shareholders. Conversely, ALTS can make sense for investors who are bullish on the WLFI token itself since ALTS’ treasury appears below-par relative to its mark-to-market valuation. But, on balance, I don’t see a compelling risk-reward equation for new shareholders, which is why I lean towards a “Hold” at these levels.
