Baby Capital inks deal with ATA Creativity Global: Takes control, acquires BABY, and builds BTCfi

Baby Capital invests $100m in ATA Creativity Global, gaining control and linking BTC ecosystem with traditional markets.

NASDAQ-listed ATA Creativity Global (hereinafter referred to as the “Company”) has signed a Term Sheet with Baby BTC Strategic Capital (“Baby Capital”), a special purpose fund with the Babylon Foundation as the lead limited partner. 

Under 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, totaling US$100 million. Upon completion, Baby Capital will gain control of the Company, appoint 3 directors, and restructure the board. This marks a new integration between traditional markets and the Bitcoin ecosystem.

While some listed companies hold crypto assets through Treasury (MSTR hoards Bitcoin, SBET focuses on Ethereum), Baby Capital’s approach with ATA Creativity Global differs fundamentally with two key advantages:

1. Activating the Bitcoin ecosystem and creating a DeFi application portal

Bitcoin has traditionally been limited to value storage due to the lack of smart contracts. Babylon’s unique Layer 2 technology addresses this limitation with trustless, non-custodial Bitcoin staking that enhances security for PoS blockchains and decentralized systems.

Its protocol allows direct self-staking without third-party custody, wrapping, or bridging, ensuring asset security while integrating Bitcoin into DeFi and expanding its applications.

Since launching in August 2024, Babylon has attracted over 45,000 Bitcoins in staking (US$5 billion+ as of July 2025), validating its technology and model.

The Babylon team includes Stanford Professor David Tse (engineering, National Academy member) and Dr. Fisher Yu (cryptographer, ex-Dolby). The project has raised US$96 million from top firms, 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, Breyer Capital, and others.

Its BABY token is listed on all major exchanges, including Binance, OKX, Bybit, Upbit, Bithumb, KuCoin, and Gate.

Post-cooperation, ATA Creativity Global will expand Bitcoin staking and BTCFi businesses to potentially cover millions of Bitcoins, unlocking Bitcoin’s US$2 trillion asset potential,  unlike MSTR’s simple asset hoarding.

2. Subversive acquisition scale to reshape the value of Baby tokens

Baby tokens, Babylon’s core asset, have a circulating market cap of US$100+ million on major exchanges like Binance and OKX. 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 is an unprecedented scale that would be equivalent to MSTR acquiring Bitcoin with US$2 trillion and SBET investing in Ethereum with US$40 billion.

After gaining control, the Company will establish a “strategic reserve treasury,” investing primarily in BABY tokens and some BTC, leveraging Baby’s exchange presence and US$100+ million market cap for value growth.

The Company will continuously acquire BABY tokens and BTC through PIPE and ATM equity issuances and convertible bonds, creating an “asset appreciation – market capitalization growth” cycle unlike conventional approaches targeting high-cap tokens.

This cooperation’s investment logic is forward-looking: the Bitcoin ecosystem is poised for growth with BTC L2 in early stages; Babylon’s staking protocol has technological advantages; Baby tokens’ market cap plus corporate acquisitions will accelerate value discovery; and the listed company provides traditional capital with compliant access to crypto innovation.

With Babylon’s technical cooperation, ecosystem support, and the “listed holding platform + token acquisition + staking revenue” model, ATA Creativity Global aims to connect traditional markets with the Bitcoin ecosystem, creating substantial investor returns.