TMTG acquires 684M CRO tokens as part of Crypto.com partnership
Trump Media & Technology Group (TMTG) closed a cope with Crypto.com to accumulate 684.4 million Cronos (CRO) tokens, marking one of the biggest company commitments to the digital asset to this point.
The transaction, valued at roughly $178 million at present costs, was structured as a 50% inventory and 50% money trade, in keeping with the Sept. 5 announcement.
TMTG stated it paid about $0.15 per token for the belongings, which symbolize roughly 2% of CRO’s circulating provide.
Strategic partnership
The settlement expands a partnership designed to combine CRO into Trump Media’s Truth Social and Truth+ platforms. The token will likely be utilized in a rewards system powered by Crypto.com’s pockets infrastructure.
The firm stated the association additionally strengthens plans for its newly fashioned subsidiary, Trump Media Group CRO Strategy Inc., which has a pending merger with Yorkville Acquisition Corp. to create a digital asset treasury enterprise targeted on accumulating CRO.
Crypto.com will present custody for the tokens underneath its institutional-grade storage program. Both the CRO tokens and Trump Media shares concerned within the swap are topic to a lockup interval.
Crypto.com CEO Kris Marszalek stated:
“This is the primary of many steps to driving utility and worth for CRO and the Cronos blockchain.”
Market and political backdrop
The buy comes as Trump-linked ventures speed up their push into digital belongings.
Earlier this week, Trump-backed American Bitcoin began trading on the Nasdaq, whereas World Liberty Financial tokens made their public debut. Meanwhile, one other affiliated agency, Thumzup, has outlined plans to accumulate hundreds of Dogecoin mining rigs.
Despite the fanfare, markets had a muted response to the event. DJT shares fell 1.5% to $16.51, whereas CRO dropped about the identical share to $0.26.
The deal, first reported in August, may in the end develop to $6.4 billion if Trump Media attracts down further capital from its credit score line. If absolutely executed, it could create the biggest CRO-focused treasury agency so far.
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