Baby BTC Strategic Capital signs term sheet with NASDAQ-listed ATA Creativity Global to acquire Baby token and deepen presence in BTCFi
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Baby BTC Strategic Capital signs term sheet with NASDAQ-listed ATA Creativity Global to acquire Baby token and deepen presence in BTCFi
With its technological collaboration with Babylon, strong ecosystem and resource support, and a unique model combining "listed holding platform + token asset acquisition + staking ecosystem yield," ATA Creativity Global is poised to become a core hub connecting traditional capital markets with the cutting-edge Bitcoin ecosystem, gaining early-mover advantage during industry growth and delivering substantial returns for investors.
Navigating Web3 tides with focused insightsNasdaq-listed company ATA Creativity Global (Nasdaq: AACG) (hereinafter referred to as the "Company") has formally signed a term sheet with Baby BTC Strategic Capital ("Baby Capital"). Baby Capital is a special purpose fund led by the Babylon Foundation as the primary limited partner, established for acquiring controlling stakes in public companies. Under the agreement, Baby Capital will subscribe to $30 million worth of new shares in the Company and receive warrants for an additional $70 million, bringing the total investment to $100 million. Upon completion of the transaction, Baby Capital will gain control of the Company and appoint three directors to its board, leading to a complete board restructuring—marking a significant step forward in integrating traditional capital markets with the cutting-edge Bitcoin ecosystem.
Currently, some public companies are allocating treasury assets toward crypto holdings: MSTR focuses on large-scale Bitcoin accumulation, while SBET concentrates on Ethereum-related ecosystems. However, Baby Capital’s strategy to acquire control of ATA Creativity Global differs fundamentally from these models, with its core competitiveness rooted in two distinct advantages:
1. Activating the Bitcoin Ecosystem and Building a DeFi Gateway
Bitcoin has long been limited to value storage due to its lack of smart contract functionality, making it difficult to integrate into application ecosystems like DeFi. Babylon's innovative technology directly addresses this issue—positioned as a pioneering Bitcoin Layer 2 project focused on enabling trustless, non-custodial Bitcoin staking to enhance the security of Proof-of-Stake (PoS) blockchains and other decentralized systems. Its globally first trustless Bitcoin staking protocol allows BTC holders to stake their assets directly on the Bitcoin blockchain without third-party custody, token wrapping, or bridging, ensuring asset security while expanding Bitcoin’s utility beyond value storage into broader DeFi applications.
Since its mainnet launch in August 2024, Babylon has attracted over 45,000 Bitcoin in staking, with total staked value exceeding $5 billion by July 2025—demonstrating strong market validation of its technology and business model.
Babylon boasts a top-tier team: co-founded by David Tse, professor of engineering at Stanford University, member of the U.S. National Academy of Engineering, and information theory expert, and Fisher Yu, cryptographer and former senior engineer at Dolby Laboratories. Their deep academic and technical foundation provides a solid base for the project. On the funding side, Babylon has raised over $96 million through multiple rounds of financing, attracting top-tier investors including Paradigm (leading a $70 million round in May 2024), Polychain Capital, Hack VC, OKX Ventures, Binance Labs (YZI Labs), Bullish Capital, Framework Ventures, Polygon Ventures, Castle Island Ventures, and Breyer Capital—underscoring broad industry recognition of its potential. Meanwhile, its native token Baby is listed across all major exchanges including Binance, OKX, Bybit, Bitget, KuCoin, MEXC, and Gate, offering strong liquidity and trading accessibility.
Following the collaboration, ATA Creativity Global is expected to deeply synergize with the Babylon project, aggressively expanding Bitcoin staking and BTCFi services, aiming to onboard tens of thousands, even hundreds of thousands, of Bitcoin into DeFi and various real-world applications. This effort could unlock the $2 trillion financial asset base of Bitcoin for diverse use cases—sharply contrasting with MSTR’s passive asset accumulation model.
2. Disruptive Acquisition Scale to Reshape Baby Token Value
The Baby token, as the core asset of the Babylon ecosystem, is already listed on all major exchanges including Binance and OKX, with a current free float market cap of over $100 million. The $100 million strategic investment by ATA Creativity Global—including direct share purchases and warrant issuance—is effectively deploying capital at a scale comparable to the token’s entire circulating market cap, an unprecedented move in the industry. To illustrate, this would be akin to MSTR investing $2 trillion to buy Bitcoin or SBET spending $400 billion on Ethereum—creating explosive potential for price revaluation.
After gaining control of the public company, ATA Creativity Global will adopt a “strategic treasury reserve” model, allocating most funds to Baby tokens and a smaller portion to Bitcoin. Leveraging the Baby token’s existing exchange listings and its current free float market cap of over $100 million, the company aims to fuel sustained value appreciation.
Post-collaboration, the company will establish a continuous growth mechanism: periodically issuing new shares via PIPE and ATM offerings, and issuing convertible bonds to continuously acquire Baby tokens and Bitcoin. This ongoing acquisition strategy will create a positive cycle of “asset appreciation → market cap growth,” differing significantly from conventional approaches targeting high-market-cap tokens.
The investment rationale behind this partnership is clear and highly forward-looking: we stand at the dawn of a Bitcoin ecosystem breakout, with BTC L2 still in early stages. Babylon’s staking protocol holds a technological edge and a leading position. Combined with the Baby token’s modest free float market cap and the massive institutional acquisition by a public entity, value discovery and price reformation are poised for acceleration. Controlling a public platform also offers traditional capital a compliant gateway to participate in crypto innovation, fully capturing compliance-driven benefits.
Backed by future technical collaboration with Babylon, robust ecosystem support, and its unique model of “public listing control + token asset acquisition + staking ecosystem yield,” ATA Creativity Global is positioned to become a pivotal bridge between traditional capital markets and the frontier of the Bitcoin ecosystem, securing a first-mover advantage during the upcoming industry surge and delivering substantial returns for investors.
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