Categories: Crypto

Trump Media teams with Crypto.com to launch $6.4 billion CRO treasury venture


Key Takeaways

  • Trump Media and Crypto.com are launching a major CRO treasury company.
  • The treasury will acquire large amounts of CRO, with funding including cash, warrants, and a $5 billion equity line.

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Trump Media & Technology Group, the parent company of Truth Social, has entered into a definitive agreement with Crypto.com to form Trump Media Group CRO Strategy, Inc., a digital asset treasury vehicle that will focus on acquiring Cronos’s native token, CRO, the companies announced Tuesday.

Designed for fast, low-cost, and cross-chain smart contracts, Cronos is integrated with Crypto.com’s worldwide payments network. Trump Media and Crypto.com believe it can drive a “digital-first American economy” via decentralized finance, payments, and tokenized assets.

“Financial markets are becoming increasingly digital every day, and companies of all sizes and sectors are strategically planning for the future by establishing digital asset treasuries anchored by assets that have created a comprehensive value proposition and are poised for even greater utility,” said Devin Nunes, Chairman and CEO of Trump Media & Technology Group.

Yorkville Acquisition Corp., Trump Media, and Crypto.com will together hold the majority stake in the new entity.

Funding at launch is expected to include $1 billion in CRO tokens, equivalent to around 19% of total CRO market cap, $200 million in cash, and $220 million in warrants, alongside a $5 billion equity line of credit from YA II PN, Ltd., a Yorkville affiliate.

Yorkville Acquisition Corp. plans to list its shares on Nasdaq under the symbol “MCGA” ahead of the business combination. Upon closing, the listing will transfer to Trump Media Group CRO Strategy.

All founding partners have committed to a one-year lock-up on their shares, after which their holdings will be gradually released over three years.

Crypto.com CEO Kris Marszalek said the scale of the planned treasury would surpass the entire market capitalization of CRO, supported by more than $400 million in cash and a $5 billion credit line.

“This, combined with share lock-ups by each party and the treasury’s validator strategy, makes it a unique and compelling offering compared to all other digital asset treasuries,” Marszalek added.

The founding partners of Trump Media Group CRO Strategy have a history of working together on digital asset ventures, including ETFs tied to Bitcoin and Cronos, promoted as “Made in America” ETFs under Truth.Fi.

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Adam Forsyth

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