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NASDAQ-listed company ATA Creativity Global (Nasdaq: AACG) (hereinafter referred to as the “Company”) has formally signed a Term Sheet with Baby BTC Strategic Capital (referred to as “Baby Capital”). Baby Capital is a special purpose fund for holding listed companies, with the Babylon Foundation as the lead limited partner. Pursuant to the agreement, Baby Capital will subscribe for new shares of the Company with a total value of US$30 million and obtain warrants worth US$70 million, bringing the total investment scale to US$100 million. Upon completion of the transaction, Baby Capital will gain control of the Company and appoint 3 directors to the listed company to carry out a comprehensive restructuring of the board of directors. This move marks a new stage in the integration of traditional capital markets and the cutting-edge Bitcoin ecosystem.
In the current market, some listed companies have laid out crypto assets through Treasury. For example, MSTR adopts a core strategy of massively hoarding Bitcoin, while SBET focuses on Ethereum-related ecosystems. However, the plan of Baby Capital to hold ATA Creativity Global is fundamentally different from such models, with its core competitiveness reflected in two unique advantages:
Due to the lack of smart contract functionality, Bitcoin has long been confined to value storage scenarios and struggled to integrate into application ecosystems such as DeFi. The innovative technology of the Babylon project precisely addresses this pain point – as an innovative Bitcoin Layer 2 network project, it focuses on realizing trustless and non-custodial Bitcoin staking to enhance the security of Proof-of-Stake (PoS) blockchains and other decentralized systems. Its world’s first trustless Bitcoin staking protocol allows BTC holders to directly self-stake assets on the Bitcoin blockchain without third-party custody, wrapping, or bridging, which not only ensures the security of users’ assets but also integrates Bitcoin into the broad ecosystem of DeFi and other areas, expanding its diverse applications beyond value storage.
Since the launch of its mainnet in August 2024, Babylon has attracted over 45,000 Bitcoins in staking, with a total staking value exceeding US$5 billion as of July 2025. The strong growth in TVL fully validates the market’s recognition of its technology and model.
The Babylon team is among the top in the industry: co-founded by Professor David Tse, a Stanford University engineering professor, member of the U.S. National Academy of Engineering, and information theory expert, together with Dr. Fisher Yu, a cryptographer and former senior engineer at Dolby Laboratories. Their profound academic background and technical accumulation have laid a solid foundation for the project. At the capital level, Babylon has raised over US$96 million through multiple rounds of financing, favored by many top institutions including Paradigm (leading the US$70 million financing 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. The strong lineup of investors demonstrates the industry’s high recognition of its potential. Meanwhile, its native token Baby has been listed on all major exchanges such as Binance, OKX, Bybit, Bitget, KuCoin, MEXC, and Gate, with significant advantages in trading convenience and market liquidity.
After the cooperation, ATA Creativity Global is expected to collaborate deeply with the Babylon project to fully expand Bitcoin staking and BTCFi-related businesses, aiming to cover 100,000, 200,000, and even millions of Bitcoins, introducing them into DeFi ecosystems and various application scenarios. This is expected to unlock the application potential of Bitcoin’s US$2 trillion financial assets, in stark contrast to models like MSTR that simply hoard assets.
As the core asset of the Babylon ecosystem, Baby tokens have been listed on all major exchanges such as Binance and OKX, with an actual circulating market capitalization of over US$100 million. This time, ATA Creativity Global will specially acquire Baby tokens with a total scale of US$100 million (including new share subscriptions and warrants), equivalent to investing a capital scale comparable to the circulating market capitalization into the market. This scale is unprecedented in the industry – by analogy, if MSTR were to acquire Bitcoin with US$2 trillion or SBET to acquire Ethereum with US$400 billion, the price reshaping effect would be extremely explosive.
After gaining control of the listed company, ATA Creativity Global will focus on a “strategic reserve treasury,” investing most of its funds in Baby tokens and a small portion in Bitcoin, relying on the circulation foundation of Baby tokens on major exchanges and their current actual circulating market capitalization of over US$100 million to accumulate momentum for subsequent value growth.
After the cooperation, the Company will establish a sustained growth mechanism: continuously acquiring Baby tokens and Bitcoin through phased equity issuances in the form of PIPE and ATM, as well as the issuance of convertible bonds. The Company’s continuous acquisitions will form a positive cycle of “asset appreciation – market capitalization growth,” which is completely different from the conventional layout targeting high-market-cap tokens in the market.
The investment logic of this cooperation is clear and highly forward-looking: we are currently on the eve of the outbreak of the Bitcoin ecosystem, with the BTC L2 track in its early stage, and Babylon’s staking protocol occupies a commanding position with technological advantages; the circulating market capitalization foundation of Baby tokens (over US$100 million) coupled with large-scale acquisitions by listed companies will accelerate value discovery and price reshaping; by holding the listed company, it can provide traditional capital with a compliant channel to participate in crypto innovation and enjoy the dividends of compliance.
Based on future technical cooperation with Babylon, strong ecosystem and resource support, as well as the unique model of “listed holding platform + token asset acquisition + staking ecosystem revenue,” ATA Creativity Global is expected to become a core hub connecting traditional capital markets and the cutting-edge Bitcoin ecosystem, seizing opportunities during the industry’s outbreak period and creating substantial returns for investors.
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