ALT5 Sigma Corporation has taken a significant step toward both share buybacks and expanding its digital asset strategy through comprehensive decisions made by its board of directors. The fintech company, traded on the Nasdaq under the ticker symbol ALTS, is preparing to implement an aggressive capital allocation plan, based on the view that the market's valuation of the company is significantly below its true asset value.
ALT5 Sigma WLFI to acquire
According to a company statement, the board of directors approved a buyback program of up to $100 million for shares trading below net asset value (NAV). Under the program, up to 50 million shares can be repurchased. This amount corresponds to approximately 40% of outstanding shares, or 22% on a fully diluted basis. ALT5 management describes this step as a strategic move to create shareholder value by effectively leveraging the company's strong balance sheet.
According to ALT5's latest quarterly financial reports, the company's balance sheet size exceeds $1.6 billion. CEO Tony Isaac argues that the company's shares are trading at approximately a 70% discount to their intrinsic value. According to Isaac, a buyback at these levels would represent a direct and significant increase in value for existing shareholders. Therefore, management views the share buyback as "one of the most efficient uses of capital." A key pillar behind this plan is ALT5's strategic partnership with World Liberty Financial (WLFI). As previously announced, WLFI granted ALT5 a waiver under certain conditions to use its digital assets as collateral. Depending on market conditions, the company plans to leverage this flexibility to support its share buyback program through borrowing. In this context, ALT5 announced a $15 million loan agreement with WLFI. This financing is intended to meet working capital needs and serve as an initial source for implementing programs approved by the board. The agreement is expected to be finalized in the coming days. The company's strategy is not limited to share buybacks alone. The board also approved additional $WLFI token purchases from the open market. ALT5 currently holds approximately 7.3 billion $WLFI tokens, valued at around $1.5 billion according to a recent SEC filing. $WLFI is the governance token of the World Liberty Financial ecosystem and is directly linked to USD1, a stablecoin at the heart of the ecosystem.
USD1's market capitalization has seen remarkable growth in recent weeks. From $3.4 billion in mid-January, it quickly surpassed $5 billion. ALT5 management expects demand for $WLFI tokens to grow as USD1 adoption increases. The company emphasizes that even small increases in the token price could contribute tens of millions of dollars to its balance sheet due to the size of its current holdings.
ALT5 also aims to expand USD1 integrations into its own digital asset payment and settlement infrastructure. This step is expected to broaden institutional use cases, increase transaction volumes, and create long-term revenue opportunities. The company plans to launch its share buyback program soon, in accordance with applicable securities regulations and market conditions. Management argues that these decisions send a clear message to the market: ALT5 strongly believes in its own shares, its strategic roadmap, and its partnership with World Liberty Financial.
