Donald Trump Jr., left, and Eric Trump at the Nasdaq Markets before ringing the opening bell to celebrate the closing of the adoption of Alt5 Sigma’s cryptocurrency deal with World Liberty Financial in New York on August 13, 2025.
Eduardo Munoz | reuters
AI Financial CorporationThe publicly traded company, which suffered huge losses after betting $1 billion on a cryptocurrency backed by the Trump family, said on Wednesday that its outlook has improved. Its shares have fallen 92% since the market opened on Wednesday, hitting 65 cents a share.
CNBC reported that the Trump family made about $500 million in that transaction. A spokesperson for the Trump brothers previously said they had no presence or involvement in AI Financial.
The company now says, in a Securities and Exchange Commission filingThat the problems that caused investors to warn about its future have been “significantly mitigated.”
AI Financial told investors in May that it was not clear it would be able to continue as a going concern for the next 12 months.
AI Financial is listed on Nasdaq. The exchange requires listed companies to keep their stock prices consistently above $1 per share. If AI Financial is unable to do so within the next two weeks, it may be delisted.
AI Financial was previously known as Alt5Sigma. Alt5 struck a $1.5 billion deal in August with World Liberty Financial, a private company founded in 2024 by Eric Trump, Donald Trump Jr. and other business partners. The publicly traded company acquired 7.3 billion WLFI tokens, which it expected would increase in value.
Instead, as of Wednesday morning, the value of the Trump-backed cryptocurrency is down 70% from the price Alt5 paid for its token, according to Coinbase. AI Financial said in a recent securities filing that its crypto assets lost $348 million in the first quarter. Apart from paper losses, it also incurred operating losses on its balance sheet. The value of WLFI has continued to decline since then.
AI Financial cannot currently sell its WLFI holdings, but it can lend out some of them. The company said in a filing on Wednesday that approximately 3.2 billion of its WLFI tokens are available “for use as collateral for loan transactions” or for other similar purposes.
CEO Tony Isaac said with Press release The company has no plans to sell those tokens. They are divided into several tranches depending on how they were acquired and are covered by various lock-up agreements that prevent any sales before mid-August.
AI Financial valued its WLFI holdings at $380 million on Tuesday evening and said $180 million was available for lending. Those holdings were initially worth $1.4 billion.
AI Financial’s stock rose 3 cents in early trading Wednesday following the announcement.
