Nasdaq-listed ATA Creativity Global (Nasdaq: AACG) (hereinafter referred to as the "Company") and Baby BTC Strategic Capital (hereinafter referred to as "Baby Capital") have officially signed a term sheet. Baby Capital is a special purpose fund used to control the listed company, led by the Babylon Foundation as the lead limited partner. Under the agreement, Baby Capital will subscribe for $30 million in new shares and receive $70 million in warrants, bringing the total investment to $100 million. Upon completion of the transaction, Baby Capital will assume control of the company and appoint three directors to the listed company, comprehensively restructuring 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 are using treasuries to invest in crypto assets. For example, MSTR's core strategy is to accumulate large amounts of Bitcoin, while SBET focuses on the Ethereum ecosystem. However, Baby Capital's acquisition of ATA Creativity Global differs fundamentally from these models. Its core competitiveness lies in two unique advantages:

1. Activate the Bitcoin ecosystem and create a DeFi application portal

Due to its lack of smart contract functionality, Bitcoin has long been limited to value storage scenarios, making it difficult to integrate into application ecosystems like DeFi. The Babylon project's innovative technology addresses this pain point. As an innovative Bitcoin layer-two network project, it focuses on enabling trustless, non-custodial Bitcoin staking to enhance the security of Proof-of-Stake (PoS) blockchains and other decentralized systems. Its launch marks the world's first trustless Bitcoin staking protocol, allowing BTC holders to self-stake their assets directly on the Bitcoin blockchain without the need for third-party custody, wrapping, or bridging. This not only ensures the security of user assets, but also integrates Bitcoin into the broader DeFi ecosystem, expanding its diverse applications beyond value storage.

Since the launch of the mainnet in August 2024, Babylon has attracted more than 45,000 bitcoins to be pledged, and as of July 2025, the total pledged value exceeded US$5 billion. The strong growth of TVL fully verifies the market's recognition of its technology and model.

Babylon's team is among the industry's top-tier: co-founded by Professor David Tse, a Stanford University engineering professor, member of the U.S. National Academy of Engineering, and information theory expert, and Dr. Fisher Yu, a cryptographer and former senior engineer at Dolby Laboratories, their deep academic background and technical expertise provide a solid foundation for the project. Babylon has raised over $96 million in funding through multiple rounds, garnering investment from top institutions including Paradigm (which 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, and Breyer Capital. This impressive investor base demonstrates the industry's strong recognition of its potential. Furthermore, its native token, Baby, is listed on all major exchanges, including Binance, OKX, Bybit, Bitget, KuCoin, MEXC, and Gate, offering significant advantages in trading convenience and market liquidity.

After the cooperation, ATA Creativity Global is expected to work closely with the Babylon project to expand Bitcoin staking and deepen its BTCFi business, aiming to cover 100,000, 200,000 or even millions of Bitcoins, and introduce them into the DeFi ecosystem and various application scenarios. It is expected to activate the application potential of Bitcoin's $2 trillion in financial assets, which is in stark contrast to the simple asset hoarding model of MSTR and others.

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

The Baby Token, the core asset of the Babylon ecosystem, is listed on all major exchanges, including Binance and OKX, with a market capitalization of over $100 million. ATA Creativity Global's $100 million acquisition of Baby Tokens (including new share subscriptions and warrants) represents a significant investment of capital comparable to the company's market capitalization. This significant investment is unprecedented in the industry, comparable to MSTR's $2 trillion acquisition of Bitcoin or SBET's $400 billion acquisition of Ethereum. The resulting price reshaping effect would be explosive.

After acquiring control of the listed company, ATA Creativity Global will focus on the "strategic reserve treasury" and invest most of its funds in Baby tokens and a small portion in Bitcoin. Relying on the circulation base of Baby tokens on mainstream exchanges and the current actual circulating market value of more than 100 million US dollars, it will accumulate energy for subsequent value growth.

Following the partnership, the company will establish a sustainable growth mechanism: issuing additional shares and convertible bonds in phases through PIPE and ATM, and continuously acquiring Baby tokens and Bitcoin. This ongoing acquisition will create a positive cycle of "asset appreciation and market capitalization growth," a stark departure from the typical market strategy for high-market-cap tokens.

The investment logic of this cooperation is clear and forward-looking: the Bitcoin ecosystem is on the eve of an explosion, the BTC L2 track is in its early stages, and the Babylon staking protocol occupies a commanding position with its technological advantages; the Baby token's circulating market value of more than 100 million US dollars, coupled with large-scale acquisitions by listed companies, will accelerate value discovery and price reshaping; by controlling listed companies, it can provide traditional capital with a channel to participate in crypto innovation in a compliant manner and enjoy the benefits of compliance.

Based on future technical cooperation with Babylon, strong ecological and resource support, and the unique model of "listed holding platform + token asset acquisition + pledge ecological income", 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 explosive growth period and creating rich returns for investors.