In an exciting move for the digital finance sector, Trump Media and Technology Group has successfully finalized a significant agreement with Crypto.com worth $105 million. This milestone follows the announcement regarding their new investment strategy aimed at building a substantial $6.42 billion treasury focused on cryptocurrency assets.
Partnership with Cronos (CRO) Explained
On September 5, a press release showcased details of the arrangement, where Trump Media will acquire 684.4 million CRO tokens at an estimated price of $0.153 each. The financial breakdown involves 50% being paid in stock and the other half in cash, with both the CRO tokens and any Trump Media shares received being held under a lockup agreement to prevent immediate sales.
This acquisition accounts for approximately 2% of the circulating CRO token supply, in addition to an upcoming acquisition of 19% of the total supply by Trump Media Group’s associated entity, CRO Strategy, Inc. Devin Nunes, the CEO and Chairman of Trump Media, remarked on the promising future of CRO as it aligns with their strategic vision.
Nunes highlighted:
We are thrilled to finalize this agreement and to kickstart our strategic collaboration with Crypto.com. We believe that CRO can serve as a powerful utility token, offering safe and quick payment options and money transfer solutions. This innovative asset will enhance our financial framework.
Furthermore, the tokens will be managed through Crypto.com’s Custody solutions, allowing Trump Media to stake CRO for additional revenue generation. Kris Marszalek, co-founder of Crypto.com, expressed his enthusiasm for the partnership and the CRO token’s utility.
According to Marszalek:
This marks just the beginning of optimizing utility and value for CRO within the Cronos blockchain. We’re pleased to support Trump Media with our industry-leading custody facilities, which will further enhance the value derived from CRO’s staking features.
Additionally, the agreement includes provisions for Truth Social to utilize CRO as an innovative reward mechanism via Crypto.com’s wallet infrastructure.
Current Market Status of CRO
As of now, the CRO token is trading at $0.26810, experiencing a slight decline of 0.95% in the last 24 hours and a total decrease of 16.42% over the past week. Along with this strategic deal with Crypto.com, Trump Media has also launched a new subsidiary, Trump Media Group CRO Strategy, Inc., which is set to merge with SPAC Yorkville Acquisition Corp. This move aims to create a focused treasury entity that will manage and expand its CRO holdings effectively.
