Baby BTC Strategic Capital has signed a Term Sheet with the Nasdaq-listed company ATA Creativity Global, with the holding company acquiring Baby Token to deeply engage in BTCFi.

2025-08-02 13:27

Read this article in 9 Minutes

This time, ATA Creativity Global conducted a $100 million special acquisition of Baby Token, equivalent to injecting into the market a fund of a size comparable to the circulating market cap, an unprecedented move in the industry.

The 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 led by the Babylon Foundation as the main limited partner for holding shares in a listed company. Under the agreement, Baby Capital will subscribe to $30 million of the Company's new shares and will also receive $70 million in warrants, making the total investment size $100 million. Upon completion of this transaction, Baby Capital will take control of the Company. Baby Capital will appoint 3 directors to the listed company, comprehensively restructure the board of directors. This move marks a new stage in the integration of the traditional capital market with the forefront ecosystem of Bitcoin.

In the current market, some listed companies are using Treasury strategies to hold cryptocurrency, such as MSTR with a core strategy of large-scale Bitcoin accumulation and SBET focusing on the Ethereum ecosystem. However, the plan for Baby Capital to control ATA Creativity Global differs fundamentally from this approach, with its core competitiveness reflected in two unique advantages:

1. Activating the Bitcoin Ecosystem to Build a DeFi Application Gateway

Due to the lack of smart contract functionality, Bitcoin has long been limited to the store of value use case, making it difficult to integrate into applications such as DeFi. The innovative technology of the Babylon project precisely addresses this pain point. As an innovative second-layer Bitcoin network project, it focuses on achieving trustless, non-custodial Bitcoin staking to enhance the security of Proof-of-Stake (PoS) blockchains and other decentralized systems. Its launch of the world's first trustless Bitcoin staking protocol allows BTC holders to directly stake assets on the Bitcoin blockchain without the need for third-party custody, wrapping, or bridging. This ensures the security of user assets and integrates Bitcoin into a wide DeFi ecosystem, expanding its applications beyond store of value.

Since the mainnet launch in August 2024, Babylon has attracted over 45,000 Bitcoin stakers, with a total staked value exceeding $5 billion as of July 2025, demonstrating strong growth in Total Value Locked (TVL) that validates market recognition of its technology and model.

The Babylon team lineup can be described as top-notch in the industry: co-founded by Stanford University engineering professor, member of the National Academy of Engineering, and information theory expert Professor David Tse, along with cryptographer and former Dolby Labs senior engineer Dr. Fisher Yu, the project has established a solid foundation with a deep academic background and technical expertise. On the capital side, Babylon has raised over $96 million through multiple rounds of financing, receiving favor from numerous top institutions, including Paradigm (leading a $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, Breyer Capital, among others. The strong lineup of investors highlights the industry's high recognition of its potential. At the same time, its native token Baby has been listed on all major exchanges such as Binance, OKX, Bybit, Bitget, KuCoin, MEXC, Gate, bringing significant trading convenience and market liquidity advantages.

After the partnership, ATA Creativity Global is expected to deeply collaborate with the Babylon project, fully expand Bitcoin staking, and delve into BTCFi and other businesses, aiming to cover 100,000, 200,000, and even millions of Bitcoins, introducing them into the DeFi ecosystem and various application scenarios, with the potential to activate the application potential of Bitcoin's $2 trillion financial asset, which starkly contrasts with the asset hoarding model of companies like MSTR.

II. Disruptive Acquisition Efforts, Reshaping Baby Token Value

As the core asset of the Babylon ecosystem, the Baby token has landed on all major exchanges such as Binance and OKX, with an actual circulating market value of over $100 million. In this special acquisition, ATA Creativity Global, with a total scale of $100 million (including new share subscription and warrants), will acquire the Baby token, equivalent to injecting into the market a fund size comparable to the circulating market value. This unprecedented level of effort in the industry—compared to scenarios where MSTR acquires Bitcoin worth $2 trillion or SBET acquires Ethereum worth $400 billion—will have an explosively reshaping effect on the price.

After gaining control of the listed company, ATA Creativity Global will focus on a "strategic reserve treasury," putting most of the funds into the Baby token and a small portion into Bitcoin. Leveraging the circulation foundation of the Baby token on major exchanges and its current actual circulating market value of over $100 million, it will store energy for future value growth.

After the partnership, the company will build a sustainable growth mechanism: issuing shares in batches through PIPE and ATM, issuing convertible bonds, and continuously acquiring Baby tokens and Bitcoin. The company's continuous acquisitions will form a positive cycle of "Asset Appreciation - Market Cap Enhancement," which is fundamentally different from the conventional layout for high-market-cap tokens in the market.

The investment logic of this partnership is clear and forward-looking: we are currently at the eve of the Bitcoin ecosystem's explosion, the BTC Layer 2 track is in its early stages, the Babylon staking protocol occupies a commanding position with its technical advantages; the Baby token, with a circulating market cap of over $100 million, combined with the large-scale acquisition by a publicly traded company, will accelerate value discovery and price reshaping; by controlling a publicly traded company, it can provide a compliant channel for traditional capital to participate in crypto innovation, enjoying the compliance dividends.

Based on future technological cooperation with Babylon, strong ecosystem and resource support, and the unique model of "Listed Holding Platform + Token Asset Acquisition + Staking Ecosystem Rewards," ATA Creativity Global is poised to become a core hub connecting the traditional capital market and the Bitcoin frontier ecosystem, seizing the opportunity in the industry's explosive period and creating substantial returns for investors.