Why ALT5 Is Buying Back Shares While Increasing WLFI Exposure

• ALT5 Sigma Corporation approved up to $100M in share buybacks, covering nearly 40% of shares.
• The company entered a $15 million loan agreement to begin executing buybacks and related initiatives.
• ALT5 also authorized additional purchases of WLFI tokens, expanding its digital asset exposure.

ALT5 Sigma Corporation has approved a major share buyback plan as it looks to address what it sees as a wide gap between its market value and underlying assets.

The company said its board has authorized up to $100 million for repurchasing shares below net asset value, covering as many as 50 million shares. That represents roughly 40% of outstanding shares and about 22% on a fully diluted basis, according to company filings.

The decision comes as ALT5 reports a balance sheet valued at more than $1.6 billion, based on its most recent quarterly filing.

Financing and Near-Term Execution

To help initiate the program, ALT5 has entered into a $15 million debt-financing agreement with WLFI, which it plans to use for working capital and to begin executing the board-approved initiatives. The company said the financing is expected to close shortly, subject to final conditions.

ALT5 also indicated it may use leverage tied to its digital asset holdings, depending on market conditions and compliance with existing agreements.

Expanded Exposure to WLFI Tokens

In addition to the buyback, the board approved further acquisitions of $WLFI tokens, the governance token linked to the World Liberty Financial ecosystem.

ALT5 currently holds approximately 7.3 billion WLFI tokens, which the company estimates were valued at about $1.5 billion at the time of its last regulatory filing. WLFI is associated with the USD1 stablecoin, whose circulating supply has grown rapidly in recent weeks.

The company said it plans to selectively increase its token exposure through open-market purchases, while also expanding USD1-related integrations across its payment and settlement platforms.

Management Perspective

ALT5 CEO Tony Isaac said the board views the buyback as a way to deploy capital during a period of perceived undervaluation, while the WLFI strategy reflects a longer-term bet on digital asset infrastructure and stablecoin adoption.

“This announcement sends a clear message to the market about our set beliefs. We believe in our stock, we believe in our strategy, and we strongly believe in our partnership with World Liberty Financial,” Isaac said. 

He added that incremental changes in token valuations could have a material impact on the company’s asset base, given the size of its holdings.

Related: Nasdaq Blocks Eric Trump From Alt5 Sigma Board Over Compliance