The owner of Truth Social, the platform of former U.S. President Donald Trump, Trump Media and Technology Group, announced a business merger with cryptocurrency exchange Crypto.com and blank check company Yorkville Acquisition.
According to the announcement made on Tuesday, Trump Media, Crypto.com, and Yorkville Acquisition have signed a definitive agreement to jointly establish Trump Media Group CRO Strategy, Inc.
This entity will be a digital asset treasury company focused on acquiring Cronos (CRO), the native cryptocurrency of the Cronos blockchain developed by Crypto.com.
The Trump Media Group CRO Strategy, held by Trump Media, Crypto.com, and Yorkville, aims to establish a treasury of at least $6.42 billion.
According to the announcement, Trump Media Group CRO Strategy will fund its digital asset treasury through $1 billion in CRO tokens, $420 million in cash and warrants, and a $5 billion credit facility provided by Yorkville affiliates.
The companies stated in the announcement that this funding will make CRO Strategy "the first and largest publicly traded CRO treasury company," adding that it could become "the largest digital asset treasury company by market capitalization in history."
As part of the business merger, Yorkville will apply for its Class A common stock to trade on Nasdaq under the ticker "MCGA."
Once the business merger is completed, Trump Media Group CRO Strategy plans to acquire CRO to create long-term value by allocating "almost all of the company's cash reserves" for this purpose.
The company emphasizes its focus on income-generating assets rather than "traditional non-productive holdings."
The strategy includes establishing and operating validation nodes, which are dedicated participants in the Cronos proof-of-stake (PoS) blockchain network, as well as delegating CRO under management to validation nodes.
By operating validation nodes, Trump Media Group CRO Strategy hopes to directly participate in the security and governance of the network and generate staking rewards to reinvest and compound its CRO holdings while offsetting operational costs.
The company stated, "The validation nodes will be established and maintained by a crypto-native team with deep knowledge of the Cronos ecosystem, aimed at maximizing staking rewards and attracting additional CRO delegation from third-party CRO holders."
Cronos was launched in November 2021 as a mainnet beta, built by the founder of Crypto.com, and initially released under the name Crypto.com Coin (CRO).
Cronos aims to provide a foundation for decentralized finance (DeFi), non-fungible tokens (NFTs), and metaverse projects, with a focus on interoperability.
The developer of Cronos, Crypto.com, has become one of the main cryptocurrency partners of the Trump administration, participating as one of only 20 invited participants in the first White House cryptocurrency summit hosted by President Trump in early March.
The Trump Media Group subsequently signed a non-binding agreement with Crypto.com to launch a series of exchange-traded funds (ETFs) in the U.S., focusing on "American-made" digital assets and securities.
As the relationship between Trump-backed companies and Crypto.com continues to expand, the U.S. cryptocurrency exchange has faced criticism over governance issues.
The community has particularly criticized Crypto.com for canceling the previously announced destruction of 70 billion CRO tokens in 2021, while some sources claim the exchange controls up to 80% of the total voting power of CRO.
On-chain investigator ZachXBT even claimed that CRO is "no different from a scam," accusing Crypto.com of manipulating the supply of CRO.
ZachXBT also commented on the news of Trump Media Group CRO Strategy on X, claiming that Crypto.com has "significant events they covered up in the past that were never disclosed."
Crypto.com subsequently denied the accuracy of ZachXBT's accusations, stating that as a regulated entity, the exchange is legally obligated to report any events.
Related: Report: Psychic's advice costs billionaire heir $80 million in cryptocurrency
Original article: “Trump Media and Technology Group to establish CRO treasury company through $6.42 billion deal with Crypto.com”
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