AI Financial Corp., (NASDAQ:AIFC), previously known as Alt5 Sigma, has reported an improved outlook despite suffering significant losses from a billion-dollar investment in a Trump-endorsed cryptocurrency. 

On Wednesday, the company disclosed in a Securities and Exchange Commission filing that the issues that led to its previous warnings to investors “have been substantially mitigated.” The company said it has enough liquidity and financial resources to support operations and meet its obligations for at least the next 12 months.

In August, the company, then known as Alt5 Sigma, entered into a $1.5 billion deal with the Trump family-backed World Liberty Financial (WLFI). Since then, AI Financial Corp’s stock has plunged over 92% from $8.97 on the deal date to $0.65, as of Wednesday’s close, as per data from Benzinga Pro.

To remain listed on Nasdaq, AI Financial must sustain a share price above $1. The company risks delisting if it does not achieve compliance within the next two weeks.

Despite the losses, AI Financial’s CEO Tony Isaac has confirmed on Wednesday that the company has no intention of selling its WLFI tokens. Approximately 3.2 billion of its WLFI tokens are available “to use as collateral for a loan transaction” or for other similar purposes. He added that the company remains focused on disciplined capital allocation while funding the growth of its businesses and strategic initiatives.

Trump Crypto Windfall Under Scrutiny

The Trump family reportedly made a staggering $2.3 billion from four crypto ventures World Liberty Financial, the TRUMP (CRYPTO: TRUMP) meme coin, American Bitcoin (NASDAQ:ABTC), and AI Financial Corp since returning to the White House, according to a Reuters investigation.

In each case, the Trumps licensed their family name, promoted the ventures on social media and public appearances, and collected revenue as investors piled in. When prices collapsed, the Trumps remained profitable while investors bore the losses.

Meanwhile, AI Financial acquired 7.3 billion WLFI tokens through the deal, positioning itself to benefit if the token increased in value. However, the value of these Trump-backed cryptocurrencies has since dropped to 70% below the initial investment. According to WLFI disclosures, President Donald Trump and unnamed members of his family were reportedly entitled to approximately $500 million in proceeds from the cryptocurrency sale.

In April, AI Financial Corp explored collaborations across AI data centers and payment systems, as per a non-binding memorandum of understanding with Nano Labs Ltd (NASDAQ:NA). The memorandum establishes a 90-day evaluation period during which the companies will explore potential collaboration in AI data centers, Agent Cloud services, and AI-native payments, assessing how their technologies can be integrated to support next-generation AI systems.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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