Tron Inc. registers to sell 1 billion USD in securities to purchase TRX

Tron Inc., a Nasdaq-listed company that previously dealt in toys, has just filed for the registration to sell securities worth up to 1 billion USD. The company's goal is to pivot into a cryptocurrency treasury fund, focusing on purchasing $TRX , the native token of the Tron blockchain.

A risky pivot strategy

Tron Inc. plans to issue shares, debt, and other instruments to raise capital, with the funds obtained being used to "buy TRX tokens" and seek other sources of income from holding this asset. This strategy is similar to the model of Strategy (formerly MicroStrategy) but with a less liquid asset, TRX.

The company's filing reveals that the toy business no longer generates positive cash flow. Therefore, the company intends to use the funds from the securities issuance to finance its obligations.

Notably, the management of #TronInc has a close connection to the Tron ecosystem. Weike Sun, the father of Tron founder Justin Sun, is the Chairman of the Board. This familial relationship raises concerns about conflicts of interest, especially since Justin Sun was previously accused by the SEC of selling unregistered securities and manipulating the TRX market.

An analyst commented that this is "a bold liquidity technical play" aimed at directly connecting capital from traditional finance into the Tron ecosystem. However, the biggest risks are the low liquidity of TRX, regulatory uncertainty, and the company's reputation. #anhbacong