Tron Inc. (formerly SRM Entertainment) has filed with the SEC to issue stocks, debt instruments, and other securities worth up to $1 billion. The company will spend these funds to expand its reserve in TRX tokens.
Against the backdrop of the news, the stock price of Tron Inc. increased by 13% to $10.84. The firm's market capitalization exceeded $200 million. After the reverse merger with Justin Sun's project and the rebranding, the indicator skyrocketed by 1300%.
According to CoinGecko, the price of TRX has increased by 2% in the last 24 hours. At the time of writing, the token is trading at $0.32.
In June, the firm raised $100 million. At the time of writing, it manages over 365 million TRX — making Tron Inc. the largest holder of the coin. The company intends to continue purchasing tokens, emulating the strategy of Michael Saylor.
Before the rebranding, SRM Entertainment was engaged in the sale of toys and souvenirs. However, this business was not profitable, so the company focused on cryptocurrency.
Vincent Liu, the investment director of Kronos Research, described the company's strategy as "aggressive liquidity engineering," aimed at integrating traditional finance into the Tron ecosystem.
"Linking the balance of a public company to the Tron blockchain creates a powerful growth driver, combining the price reflexivity mechanism and the competitive advantage of being a first mover," he noted in a comment to Decrypt.
However, an expert warned that the low market depth of TRX makes the company's plans more volatile than, for example, in the case of Bitcoin.
