Trump Media and Crypto.com to create crypto treasury in US$6.4b deal
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The news: Trump Media & Technology Group (TMTG) and Crypto.com announced plans to launch a company that will implement a treasury-style strategy to accrue Crypto.com's native token, cronos (CRO), deepening US President Donald Trump’s ties to the crypto industry.
The numbers: The CRO crypto token rose 22.6% to USD0.19 ($0.29) on the announcement, while Trump Media's shares jumped 4.2% to USD17.94. According to CoinGecko data, CRO was last valued at USD6.8 billion.
The context: A statement released by TMTG explains that the new company, Trump Media Group CRO Strategy, will go public via a special purpose acquisition company (SPAC), Yorkville Acquisition Corp.
Funding for the SPAC is expected to consist of USD1 billion in CRO token (representing 19% of the total CRO market cap), USD200 million in cash, USD220 million in warrants and a $5 billion equity line of credit from an affiliate of Yorkville.
The statement says it expects the combination to be the first and largest publicly traded CRO treasury company and the largest digital asset treasury company to market cap ratio in history.
TMTG announced in July that it had built up a USD2 billion stake in bitcoin and bitcoin-related securities as part of its bitcoin treasury strategy.
What they said: Devin Nunes, chairman and CEO of TMTG said: “We continue to be bullish on cryptocurrency, and we are excited to be partnering with a leading global cryptocurrency platform and namesake of its industry in Crypto.com and one of the most sophisticated investor groups in Yorkville for this strategic initiative.”
The sources: TMTG statement, Bloomberg, Reuters
