ATA Creativity Global To Receive Up To $100M Investment From Baby Capital, Enabling Takeover And Bitcoin Ecosystem Integration

ATA Creativity Global (NASDAQ:AACG) (hereinafter referred to as the "Company") has formally signed a Memorandum of Understanding (MOU) with Baby BTC Strategic Capital Limited (referred to as "Baby Capital"). Baby Capital is a special purpose fund lead-invested by the Babylon Foundation, established for the purpose of holding listed companies. According to the agreement, Baby Capital will subscribe for new shares of the Company with a total value of up to 30 million US dollars, and at the same time obtain warrants worth 70 million US dollars, making the total investment scale of this transaction reach up to 100 million US dollars. Upon completion of the transaction, Baby Capital will gain control of the Company and appoint 3 directors to the listed company to conduct a comprehensive restructuring of the board of directors. This marks a new stage in the integration of traditional capital markets and the cutting-edge Bitcoin ecosystem.

In the current market, some listed companies deploy encrypted assets through Treasury. For example, MSTR takes large-scale hoarding of Bitcoin as its core strategy, while SBET focuses on Ethereum-related ecosystems. However, the plan of Baby Capital to hold ATA Creativity Global is essentially different from such models, and its core competitiveness is reflected in two unique advantages:

Due to the lack of smart contract functions, Bitcoin has long been limited to the scenario of value storage and is difficult to integrate into DeFi and other application ecosystems. The innovative technology of the Babylon Foundation just solves this pain point - as an innovative Bitcoin Layer 2 network project, it focuses on realizing trustless and non-custodial Bitcoin staking to enhance the security of Proof-of-Stake (PoS) blockchains and other decentralized systems. Its world's first trustless Bitcoin staking protocol allows BTC holders to directly self-stake their assets on the Bitcoin blockchain without third-party custody, wrapping or bridging, which not only ensures the security of users' assets but also integrates Bitcoin into the broad ecosystem such as DeFi, expanding its multiple applications beyond value storage.

Since the launch of its mainnet in August 2024, Babylon has attracted more than 57,000 Bitcoins for staking, with a total staking value exceeding 5 billion US dollars as of July 2025. The strong growth of TVL fully verifies the market's recognition of its technology and model.