Trump Media & Crypto.com: $6.4B Cronos (CRO) Treasury Plan
Trump Media & Crypto.com Unveil $6.4B Cronos Treasury Strategy
Trump Media & Technology Group Corp. (TMTG), in collaboration with Crypto.com, is embarking on a significant digital asset treasury strategy focused on Cronos (CRO). The initiative, valued at $6.4 billion, aims to position CRO as a core reserve asset.
TMTG, Yorkville Acquisition Corp., and Crypto.com have entered into an agreement to form Trump Media Group CRO Strategy, Inc., a digital asset treasury company primarily focused on acquiring CRO, the native cryptocurrency of the Cronos ecosystem.
Yorkville Acquisition Corp., a SPAC, is backing this media-crypto partnership.
Details of the Agreement
Trump Media plans to acquire approximately $105 million worth of CRO, representing about 2% of the cryptocurrency’s total market value. In return, Crypto.com will invest $50 million in Trump Media equity.
The strategy extends beyond the initial exchange, aiming to build a treasury comprised of:
- $1 billion in CRO
- $200 million in cash
- $220 million through mandatory warrant exercises
Additionally, a Yorkville affiliate, YA II PN, Ltd., has committed a $5 billion equity line of credit.
This would make Trump Media the largest publicly traded holder of CRO.
Implications and Market Impact
Upon completion of the deal, Yorkville, Trump Media, and Crypto.com will hold majority ownership of Trump Media Group CRO Strategy as founding partners. This move reflects a broader trend of companies venturing into cryptocurrency, considering assets like Bitcoin and Ethereum for their treasury holdings.
Alice Liu, Head of Research at CoinMarketCap, views this as a sign of increasing institutional adoption.
“By anchoring Truth Social’s rewards economy and corporate reserves in CRO, Trump Media is effectively institutionalizing the token.”
The strategy is reminiscent of MicroStrategy's aggressive Bitcoin accumulation, which significantly boosted its stock value.
Market Reaction
The announcement triggered a market response:
- CRO surged nearly 40% to $0.2236.
- The Official Trump (TRUMP) memecoin edged up 1.95% to $8.43.
This highlights the expanding influence of Donald Trump in the crypto sector since 2022, with involvement now spanning a multi-billion-dollar business.