Trump Media And Crypto.com Form CRO Treasury Company In $105 Million Token Deal

Trump Media & Technology Group Corp. DJT has struck a deal with Crypto.com and Yorkville Acquisition Corp. to establish a cryptocurrency treasury company centered on holding Cronos CRO/USD tokens, according to an SEC filing on Tuesday.

What Happened: Under the agreement, Crypto.com will transfer 684.4 million CRO tokens, valued at roughly $105 million, to Trump Media in exchange for 2.8 million Trump Media shares and $50 million in cash, Bloomberg reported.

All shares held by Trump Media, Crypto.com, and Yorkville will face a mandatory one-year lock-up period following the transaction's close.

The venture, to be named Trump Media Group CRO Strategy Inc., will follow the model pioneered by Michael Saylor's Strategy Inc. MSTR, raising capital specifically to buy and hold cryptocurrencies.

Funding for the new company is expected to include 6.3 billion CRO tokens, $200 million in cash, $220 million in mandatory warrants, and a $5 billion equity line of credit from a Yorkville affiliate.

Also Read: Bitcoin To Hit $1.3 Million By 2035, Bitwise Forecasts

Why It Matters: Shares of Trump Media rose 7.9% in premarket trading in New York, while Yorkville Acquisition stock gained 3.5%.

Cronos is the native token of the Cronos blockchain, supported by Crypto.com.

The exchange's CEO, Kris Marszalek, met with Donald Trump at Mar-a-Lago after his election victory last year, and the company later contributed $1 million to his inaugural committee.

Crypto.com has previously worked with Trump Media on several proposed crypto-linked ETFs, including a "Crypto Blue Chip" fund designed to provide exposure to Cronos, Bitcoin BTC/USD, Ethereum ETH/USD, and other major digital assets.

The newly formed company intends to list on Nasdaq under the ticker symbol MCGA.

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