Trump Media & Technology Group (TMTG), the company behind Truth Social, has finalized a deal with Crypto.com to acquire 684.4 million Cronos (CRO) tokens. This acquisition is part of a strategic partnership that aims to integrate CRO into Trump Media's platforms and establish a substantial digital asset treasury.

Deal Details

The agreement stipulates that Trump Media will acquire the CRO tokens at approximately 15.3 cents per token, totaling around $105 million, through a 50% stock and 50% cash exchange with Crypto.com. The acquired tokens represent about 2% of the current circulating supply of CRO. Both the CRO tokens and the Trump Media shares involved in the deal will be subject to a lock-up period. Trump Media plans to secure these tokens using Crypto.com Custody, an institutional-grade custody solution that will allow the company to stake the tokens for additional revenue generation.

Strategic Implications

This move signifies Trump Media's deeper foray into the digital asset space, with CRO playing a central role in its digital treasury strategy. Trump Media intends to utilize CRO as a core utility asset, facilitating faster and lower-cost transfers within its digital ecosystem. The partnership also aims to integrate CRO into the Truth Social and Truth+ platforms, where it will power a rewards system using Crypto.com's digital wallet infrastructure. Users will be able to convert "gems" earned through platform activities into CRO and other benefits.

Devin Nunes, CEO and Chairman of Trump Media, expressed enthusiasm about the deal, stating that Trump Media is eager to begin fulfilling its strategic partnership with Crypto.com. Kris Marszalek, Co-Founder and CEO of Crypto.com, noted that this is the first of many steps to drive utility and value for CRO and the Cronos blockchain. He also stated Crypto.com's pride in supporting Trump Media with its custody solution and generating additional value through CRO's staking model.

CRO Strategy

In addition to the direct acquisition of CRO tokens, Trump Media has launched a dedicated entity named Trump Media Group CRO Strategy, Inc., with the goal of acquiring up to 19% of CRO's circulating supply. This initiative is structured through a definitive SPAC agreement with Yorkville Acquisition Corp. The objective is to form a digital asset treasury focused on accumulating CRO as a long-term reserve. The combined funding for this treasury is projected to include $1 billion in CRO tokens, $200 million in cash, $220 million in warrants, and a $5 billion equity line of credit. If realized, this would be the largest CRO-focused treasury firm to date.

About CRO and Crypto.com

CRO is the native token of the Crypto.com Chain, which powers the exchange's ecosystem of payments, trading, and decentralized finance (DeFi) products. Crypto.com has a large user base, with over 100 million registered users globally. Crypto.com offers a variety of financial services, including an app, exchange, and noncustodial DeFi wallet, NFT marketplace.

Trump Media's Broader Crypto Ambitions

This deal is part of a larger trend of Trump-affiliated entities embracing cryptocurrency. Trump Media has also accumulated billions of dollars in Bitcoin. Trump Media's mission is to end what it sees as Big Tech's assault on free speech by opening up the Internet and giving people their voices back. It operates Truth Social, a social media platform, and Truth+, a TV streaming platform. Trump Media is also launching Truth.Fi, a financial services and FinTech brand.