Nasdaq-listed company ATA Creativity Global (Nasdaq: AACG) (hereinafter referred to as the "Company") has officially signed a Term Sheet with Baby BTC Strategic Capital (hereinafter referred to as "Baby Capital"). Baby Capital is a special-purpose fund led by the Babylon Foundation as the primary limited partner for controlling the listed company. According to the agreement, Baby Capital will subscribe to $30 million of new shares in the company and obtain warrants worth $70 million, with a total investment scale of $100 million. Upon completion of the transaction, Baby Capital will acquire control of the company and appoint 3 directors to the board, conducting a comprehensive board reorganization, marking a new stage of integration between traditional capital markets and the Bitcoin frontier ecosystem.

Currently, some listed companies are deploying crypto assets through Treasury, such as MSTR focusing on large-scale Bitcoin accumulation and SBET concentrating on the Ethereum ecosystem. However, Baby Capital's plan to acquire ATA Creativity Global differs fundamentally, with two unique competitive advantages:

I. Activating the Bitcoin Ecosystem and Creating a DeFi Application Entry Point

Bitcoin has been limited to value storage scenarios due to the lack of smart contract functionality, struggling to integrate into DeFi and other application ecosystems. The innovative technology of the Babylon project precisely addresses this pain point—as an innovative Bitcoin Layer 2 network project, it focuses on implementing trustless, non-custodial Bitcoin staking to enhance the security of Proof-of-Stake (PoS) blockchains and other decentralized systems. Its globally first trustless Bitcoin staking protocol allows BTC holders to directly stake assets on the Bitcoin blockchain without third-party custody, wrapping, or bridging, ensuring user asset security while integrating Bitcoin into the broader DeFi ecosystem and expanding its applications beyond value storage.

Since its mainnet launch in August 2024, Babylon has attracted over 45,000 Bitcoin stakes, with the total staked value exceeding $5 billion by July 2025, and its strong TVL growth fully validates the market's recognition of its technology and model.

The Babylon team boasts top-tier industry talent: co-founded by Stanford University Engineering Professor David Tse, a National Academy of Engineering member and information theory expert, and cryptographer Dr. Fisher Yu, a former senior engineer at Dolby Laboratories, their profound academic background and technical accumulation lay a solid foundation for the project. In terms of capital, Babylon has raised over $96 million through multiple funding rounds, attracting numerous top-tier institutions including Paradigm (leading the $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, demonstrating the industry's high recognition of its potential. Simultaneously, its native token Baby is listed on all major exchanges including Binance, OKX, Bybit, Bitget, KuCoin, MEXC, and Gate, with significant trading convenience and market liquidity.

After the collaboration, ATA Creativity Global is expected to deeply synergize with the Babylon project, focusing on expanding Bitcoin staking and BTCFi businesses, targeting coverage of 100,000, 200,000, or even millions of Bitcoins, introducing them into the DeFi ecosystem and various application scenarios, potentially activating the $2 trillion financial asset application potential of Bitcoin, in stark contrast to MSTR's mere asset accumulation model.

II. Disruptive Acquisition Intensity and Reshaping Baby Token Value

The Baby token, as the core asset of the Babylon ecosystem, is listed on all major exchanges like Binance and OKX, with an actual circulating market value of over $100 million. This time, ATA Creativity Global's total investment of $100 million (including new stock subscription and warrants) specifically targeting Baby tokens is equivalent to injecting funds matching its current circulating market value—an unprecedented intensity in the industry. Compared to MSTR potentially acquiring Bitcoin with $2 trillion or SBET acquiring Ethereum with $400 billion, its price reshaping effect will be extremely explosive.

After gaining control of the listed company, ATA Creativity Global will focus on a "strategic reserve treasury," investing most funds in Baby tokens and a small portion in Bitcoin, leveraging the token's circulation on major exchanges and its current market value of over $100 million to prepare for future value growth.

After the collaboration, the company will establish a continuous growth mechanism: gradually issuing new stocks through PIPE and ATM forms, issuing convertible bonds, and continuously acquiring Baby tokens and Bitcoin. The company's ongoing acquisitions will create a positive cycle of "asset appreciation-market value enhancement," distinctly different from conventional strategies targeting high-market-cap tokens.

The investment logic of this collaboration is clear and forward-looking: at the dawn of the Bitcoin ecosystem's explosion, with the BTC L2 track in its early stages, Babylon's staking protocol holds the high ground through technological advantages; the $100 million-plus circulating market value of Baby tokens, combined with the listed company's large-scale acquisition, will accelerate value discovery and price reshaping; by controlling a listed company, it provides a compliant channel for traditional capital to participate in crypto innovation and enjoy regulatory dividends.

Based on future technological collaboration with Babylon, its powerful ecosystem and resource support, and the unique model of "listed holding platform + token asset acquisition + staking ecosystem revenue," ATA Creativity Global is poised to become a core hub connecting traditional capital markets with the Bitcoin frontier ecosystem, seizing the initiative during the industry's explosive period and creating substantial returns for investors.

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