Trump Media will buy Cronos (CRO) tokens for $105 million, and Crypto.com will receive DJT shares for $50 million as part of the partnership. This will make the CRO token central to the Truth Social reward system.
Trump Media and Technology Group, owner of the platform Truth Social a company that has been working with the US President Donald Trump, has announced a merger with Crypto.com, a cryptocurrency exchange, and Yorkville Acquisition, a special purpose vehicle.
Trump Media, Crypto.com and Yorkville Acquisition have entered into a definitive agreement to jointly create the Trump Media Group CRO Strategy.
This entity will become a digital asset custodian company that will focus on acquiring the native cryptocurrency of the Cronos blockchain developed by Crypto.com. The total amount will be at least $6.42 billion.
The Trump Media Group CRO Strategy will fund the treasury with $1 billion in CRO tokens, $420 million in cash and warrants, plus a $5 billion credit line from affiliate Yorkville.
This capital will make CRO Strategy the first and largest publicly traded CRO custodian, and potentially the largest digital asset custodian in history by market capitalization.
After the Trump Media Group merger is completed, CRO Strategy plans to generate long-term value by allocating “virtually all of the company’s cash reserves” to the acquisition of CROs.
The strategy includes the establishment and operation of a validator node, or specialized participant in the Cronos proof-of-stake (PoS) blockchain network, along with the delegation of CROs to manage the validator. By managing the validator node, Trump Media Group CRO Strategy wants to ensure direct involvement in the security and governance of the network, as well as receive staking rewards for reinvestment to increase CRO holdings and offset operating costs.
Launched in November 2021, Cronos was created by the founders of Crypto.com and initially launched as Crypto.com Coin (CRO).
On the back of this news, the CRO token jumped by 38.63% to $0.2853.
Source: Yorkville Acquisition Corp
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