The Trump Family's $1.5 billion acquisition of ALT5 Sigma (ALTS.US) induces Point72 and ExodusPoint's two major hedge funds to enter the market

The Zhitong Finance App learned that Eric Trump and Donald Trump Jr appeared at NASDAQ a week ago to ring the opening bell and announced the $1.5 billion acquisition of biotech-transformed crypto payment company ALT5 Sigma (ALTS.US) and World Liberty Financial, a crypto project supported by the Trump family. This move quickly attracted blue-chip hedge funds to enter the market. According to information, the two major hedge funds, Point72 and ExodusPoint, both hold shares in Alt5 Sigma. The former held a position of 26.7 million US dollars, while the latter slightly reduced its holdings to 4.75% (market capitalization of 32.1 million US dollars) within a week after August 11.

According to the latest disclosure documents, Steve Cohen's Point72 Asset Management holds 4% of Alt5 Sigma's shares through its fund. Although the stock plummeted 10% to $5.48 on Tuesday, the value of its holdings reached US$26.7 million. Notably, Point72's shareholding was not Cohen's personal act, but was completed through institutional funds.

The main fund of another capital giant, ExodusPoint Capital Management, held about 6.2 million shares of Alt5 Sigma on August 11, accounting for more than 5% of tradable shares, but its holdings were reduced to 5.9 million shares within the following week. The current shareholding ratio dropped to 4.75%, corresponding to a market value of 32.1 million US dollars.

Neither agency commented on the details of the deal, and Alt5 Sigma did not respond to requests for interviews.

Behind this capital feast is Alt5 Sigma's dramatic transformation. The biotech company, formerly known as JanOne, was in deep delisting crisis last year, with a market capitalization of less than $25 million.

After changing the name of the fintech company, it achieved a spectacular transformation through a targeted increase of 1.5 billion US dollars and a “$WLFI financial strategy” — World Liberty Financial injected 7.5% of the token supply into Alt5 Sigma in exchange for 100 million shares, and Eric Trump joined the board of directors at the same time. Last week, the company's market capitalization surpassed an all-time high of 900 million US dollars.

Although token trading has not yet been opened, World Liberty CEO Zach Vitkov (son of US Special Envoy for Middle East Affairs Steve Vitkov) revealed that holders will receive circulation rights “in the next few weeks.”

According to the shareholding structure, companies linked to the Trump family hold 40% of World Liberty's parent company. Co-founders include Donald Trump Jr., Baron Trump, and Alex Vitkov, while Trump himself and Steve Vitkov are listed as “honorary co-founders.” This capital operation involving both the political and business sectors is becoming a new focus of the intertwining of the crypto market with traditional finance.