Trump Media & Technology Group announced on Tuesday that it has reached a final agreement with Crypto.com and the special purpose acquisition company (SPAC) Yorkville Acquisition to establish a digital asset financial company centered on the native token CRO of the Cronos blockchain.
The company will be renamed "Trump Media Group CRO Strategy," with the goal of establishing the world's largest CRO reserve company through large-scale holdings of CRO.
The statement indicated that the company's initial assets will include:
$1 billion CRO tokens (approximately 6.3 billion, accounting for about 19% of the current total supply);
$200 million cash;
$220 million warrants;
$5 billion credit line provided by Yorkville affiliate YA II PN Ltd.
Although the official trading scale is set at $6.4 billion, much of the amount actually depends on whether credit limits can be successfully utilized in the future. There is little known about YA II PN Ltd., which provides a $5 billion credit line.
If the transaction is successfully completed, Trump Media, Crypto.com, and Yorkville will become the founding shareholders of the company and commit not to sell their shares and warrants within a year, after which they will gradually unlock over three years.
Crypto.com CEO Kris Marszalek stated: "The scale and structure of this project will surpass the current total market value of CRO."
Additionally, the new company will operate verification nodes on the Cronos blockchain and will reinvest staking rewards to expand the holding scale.
In addition to the aforementioned SPAC transaction, Trump Media has signed another agreement with Crypto.com, wherein the former will purchase $105 million worth of CRO (approximately 6.84 million); while the latter will buy $50 million worth of DJT stock.
According to documents submitted to the U.S. Securities and Exchange Commission (SEC), these tokens are being sold by Crypto.com's affiliate Foris Holdings U.S., Inc.
According to the plan, the CRO held by Trump Media Group CRO Strategy will be custodied by Crypto.com Custody and staked to generate additional income.
More importantly, Trump Media also plans to adopt CRO as the functional token for its Truth Social and Truth+ platforms:
Users can exchange 'gems' on the platform for CRO and other rewards through the Crypto.com wallet infrastructure;
In the future, it will also open up the option to pay subscription fees with CRO and collaborate with brands to launch CRO promotional activities.
Trump Media CEO Devin Nunes emphasized that the company remains bullish on the cryptocurrency outlook; meanwhile, Marszalek described this collaboration as a "historic moment for the Cronos blockchain."
The Cronos blockchain was developed by Cronos Labs, with Crypto.com being the main partner in building multiple products on the network.
"Trump Media Teams Up with Crypto.com to Create a $6.4 Billion CRO Reserve Company" was first published on (BlockTempo).
