TLDR
- Trump Media partners with Crypto.com to create Trump Media CRO Strategy, a digital asset treasury company
- The new company will hold $6.42 billion worth of CRO tokens, cash, and credit facilities
- Trump Media plans to purchase $105 million in CRO tokens as part of the deal
- CRO token price jumped 30% following the announcement on Tuesday
- The partnership includes plans for a rewards system on Truth Social using Crypto.com’s wallet infrastructure
Trump Media and Technology Group announced a major partnership with cryptocurrency exchange Crypto.com on Tuesday. The deal creates a new digital asset treasury company called Trump Media CRO Strategy.
The partnership involves Trump Media, Crypto.com, and blank check company Yorkville Acquisition. Together they will establish what they call the “largest publicly traded CRO treasury company.”
Trump Media CRO Strategy aims to build a treasury worth $6.42 billion. The funding comes from multiple sources including $1 billion in CRO tokens and $420 million in cash and warrants.
Yorkville will provide a $5 billion credit line through an affiliate company. Trump Media said it plans to purchase $105 million worth of CRO tokens directly.
The announcement sent CRO token prices up 30% on Tuesday morning to 21 cents per token. The token remains well below its 2021 peak of nearly 97 cents.
Treasury Strategy and Staking Operations
The new company plans to use most of its cash reserves to acquire CRO tokens. This follows the model pioneered by MicroStrategy, which began buying bitcoin in 2020.
Trump Media CRO Strategy will operate a validator node on the Cronos blockchain. This allows the company to participate in network security and governance while earning staking rewards.
The validator node will help generate additional income to reinvest in more CRO tokens. A crypto-native team with Cronos expertise will manage the validator operations.
CRO tokens power the Cronos blockchain, which launched in November 2021. The network supports decentralized finance applications, NFTs, and metaverse projects.
Yorkville Acquisition plans to list its shares on Nasdaq under the ticker symbol MCGA. This will make CRO Strategy publicly tradable once the deal completes.
Growing Trump Crypto Empire
The partnership expands the Trump family’s cryptocurrency business ventures. Trump Media previously announced plans to hold bitcoin and create cryptocurrency exchange-traded funds.
World Liberty Financial, launched by Trump and his sons, has received investments from UAE funds and crypto entrepreneur Justin Sun. The SEC paused a lawsuit against Sun in 2023.
Integration with Truth Social
Trump Media plans to introduce a rewards system on Truth Social using Crypto.com’s digital wallet infrastructure. This integration could drive adoption of CRO tokens among Truth Social users.
The partnership builds on existing ties between Trump-backed companies and Crypto.com. The exchange attended Trump’s first White House Crypto Summit in March as one of 20 invited participants.
Trump Technology Group signed a separate agreement with Crypto.com to launch “Made in America” digital asset ETFs. The expanding relationship has drawn both support and criticism from the crypto community.
Some critics have questioned Crypto.com’s governance practices and control over CRO token supply. Onchain investigator ZachXBT called CRO “no different from a scam” and accused the exchange of supply manipulation.
The new Trump Media CRO Strategy company expects to complete its business combination in the coming months, pending regulatory approvals.
