NASDAQ-listed ATA Creativity Global (Nasdaq: AACG) (“the Company”) has officially signed a term sheet with Baby BTC Strategic Capital (“Baby Capital”). Baby Capital is a specialized fund, with the Babylon Foundation as its primary limited partner, formed to acquire controlling stakes in public companies. Under the agreement, Baby Capital will subscribe for $30 million in new shares of the Company and receive $70 million in warrants, bringing the total investment to $100 million. Upon completion of the transaction, Baby Capital will take control of the Company, appoint three directors to the board, and implement a full board restructuring. This move marks a new chapter in the integration of traditional capital markets with the forefront of the Bitcoin ecosystem.

Currently, some public companies are allocating crypto assets as part of their treasury strategies—for example, MSTR pursues aggressive Bitcoin accumulation, while SBET focuses on Ethereum-related initiatives. Baby Capital’s strategy for acquiring control of ATA Creativity Global, however, is fundamentally different and is distinguished by two unique advantages:

I. Powering the Bitcoin Ecosystem and Establishing a DeFi On-Ramp

Because Bitcoin lacks smart contract capability, it has historically been limited to a store-of-value role and struggled to participate in the DeFi ecosystem and broader applications. Babylon’s breakthrough technology addresses this challenge directly—it is an innovative Bitcoin Layer 2 project that enables trustless, non-custodial Bitcoin staking to bolster the security of Proof-of-Stake (PoS) blockchains and other decentralized systems. Babylon launched the world’s first trustless Bitcoin staking protocol. This protocol allows BTC holders to self-stake directly on the Bitcoin blockchain—no third-party custody, no wrapping, no bridging required. This ensures user asset security while integrating Bitcoin into the DeFi ecosystem and expanding its utility beyond simple value storage.

Since its mainnet launch in August 2024, Babylon has attracted more than 45,000 BTC staked. As of July 2025, the aggregate value staked exceeds $5 billion. The market’s robust endorsement of Babylon’s technology and business model is reflected in its TVL growth.

Babylon’s team features top-tier expertise: Stanford professor, National Academy of Engineering member, and information theory authority Professor David Tse, together with cryptographer and former Dolby Laboratories senior engineer Dr. Fisher Yu, founded Babylon. Their deep academic and technical background lays a rock-solid foundation for Babylon. On the financial side, Babylon has raised over $96 million through multiple funding rounds, drawing investment from Paradigm (led 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, Breyer Capital, and more—testament to the industry’s high level of confidence. Babylon’s native Baby token is now listed on all major exchanges—Binance, OKX, Bybit, Bitget, KuCoin, MEXC, Gate, and others—offering outstanding trading convenience and liquidity.

With this collaboration, ATA Creativity Global plans to work closely with Babylon to expand Bitcoin staking and deepen BTCFi initiatives, targeting engagement with 100,000, 200,000, or even millions of Bitcoin. The objective is to bring these assets into DeFi and a range of application scenarios. This would unlock the potential of $2 trillion in Bitcoin financial assets—in sharp contrast to MSTR’s simple accumulation model.

II. Unprecedented Acquisition Power: Catalyzing Baby Token Value

The Baby token, central to the Babylon ecosystem, is listed on all major exchanges including Binance and OKX, and currently has a real circulating market cap exceeding $100 million. ATA Creativity Global’s targeted $100 million investment (combining new shares and warrants) to acquire Baby token matches the existing circulating market cap—an industry first. To put that in perspective, it’s like MSTR acquiring $2 trillion in Bitcoin or SBET acquiring $400 billion in Ethereum; the impact on price discovery could be explosive.

After gaining control of ATA Creativity Global, the Company will make “strategic treasury reserves” its core approach—allocating most funds to Baby token and a smaller portion to Bitcoin. With Baby token’s active trading on major exchanges and a current market cap over $100 million, this sets the stage for future value growth.

The Company will establish a mechanism for ongoing growth: issuing additional shares and convertible bonds in tranches (using PIPE and ATM structures) to steadily acquire more Baby token and Bitcoin. This sustained acquisition will create a positive feedback loop of “asset appreciation → market cap expansion,” a model that stands apart from the standard strategies focused on high market cap tokens in today’s market.

The logic behind this partnership is both clear and forward-looking: The Bitcoin ecosystem is on the verge of explosive growth, the BTC L2 track is still in its infancy, and Babylon’s technical advantages put it in a leading position. The combination of the Baby token’s $100+ million market cap with large-scale listed company acquisitions will rapidly drive price discovery and value re-rating. Gaining control of a public company offers traditional capital a compliant channel to participate in crypto innovation, allowing them to share in regulatory advantages.

Backed by future technical collaboration with Babylon, deep ecosystem resources, and its unique model—“listed company holding platform + token asset acquisition + staking yield”—ATA Creativity Global is well positioned to become the key bridge between traditional capital markets and Bitcoin’s leading-edge ecosystem, capturing first-mover opportunities during an industry growth phase and delivering strong returns for investors.

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