Trump Media Partners with Crypto.com to Launch $6 Billion CRO Treasury
The Trump Media & Technology Group (TMTG) has partnered with Crypto.com and Yorkville to establish the first Cronos (CRO) treasury, named Trump Media Group CRO Strategy, Inc. This digital asset treasury aims to acquire Crypto.com’s native token.
Key Details
- The project involves a funding structure of $1 billion in CRO tokens (19% of total market cap), $200 million in cash, and $220 million from mandatory exercise warrants.
- It includes a $5 billion equity line of credit from a Yorkville affiliate, making it potentially the largest publicly traded CRO treasury company.
- Devin Nunes, TMTG’s CEO, noted the increasing significance of digital asset treasuries in financial markets.
- Kris Marszalek, CEO of Crypto.com, mentioned that the project's scale exceeds the current market capitalization of CRO and features unique characteristics like share lock-ups and a validator strategy.
- TMTG previously announced holdings of $2 billion in Bitcoin and a planned $300 million options-based strategy for Bitcoin.
- Crypto.com will act as the Bitcoin custodian for TMTG's potential Bitcoin ETF registration with the SEC.
- Following the announcement, CRO surged 22%, reaching near $0.20, with monthly and year-to-date gains of 40% and 120% respectively.
- CRO is currently trading 79% below its all-time high of $0.96.
