Trump Media, Crypto.com announce a new digital asset treasury firm with $6.4 billion in funding
The nascent treasury firm will be the largest holder of cronos, according to Crypto.com’s CEO.
Shares of Trump Media & Technology Group and Crypto.com’s cryptocurrency, cronos, have jumped on an announcement the two have signed an agreement to establish Trump Media Group CRO Strategy, a digital asset treasury firm targeting the accumulation of cronos.
The new cronos-focused company will have a more than $6.4 billion backing, with funding coming from:
$1 billion in cronos, which is roughly 19% of the token’s total market capitalization at the time of the announcement;
$200 million in cash;
$220 million in cash-in mandatory exercise warrants;
A $5 billion equity line of credit.
Crypto.com CEO Kris Marszalek stated in a post on X that the funding for Trump Media Group CRO Strategy “will add up to an unprecedented amount of dry powder for any digital asset treasury company, exceeding the total market cap of $CRO.” The market cap is about $6.9 billion as of 10:45 a.m. ET.
“To put it in perspective, to reach similar level of buying power and impact on ethereum, leading ETH treasury companies would have to buy hundreds of billion[s] of ETH,” added Marszalek, who said Trump Media will acquire $105 million of cronos tokens and Crypto.com will scoop up $50 million of Trump Media shares. He said the new company, which will trade under “MCGA,” short for “Make CRO Great Again,” will be the world’s largest holder of cronos, with more 6.3 billion tokens in its holdings at completion.
The partnership includes the integration of cronos as the platform token of Truth Social, per Marszalek. Alongside Trump Media and Crypto.com, Yorkville Acquisition Corp., a special purpose acquisition company, will serve as a founding partner of the nascent treasury firm.
According to a press release, the three founding members of Trump Media Group CRO Strategy have agreed to a one-year lockup period on their founding shareholdings, followed by an additional three-year restrictive unlock schedule as a means to demonstrate long-term commitment.
