Trump Media Group and Crypto.com have teamed up to launch CRO Strategy, a treasury company set to acquire $1 billion worth of Cronos (CRO).
The deal, announced on August 25, also involves Yorkville Acquisition Corp., a special purpose acquisition company, which will join as a founding partner. The plan is to build the first publicly traded Cronos treasury firm, holding about 19% of the token’s total supply.
According to the press release, the new company will be called Trump Media Group CRO Strategy, Inc. It will combine $1 billion in CRO with $200 million in cash and $220 million in mandatory exercise warrants.
On top of that, Yorkville’s affiliate will provide an additional $5 billion equity line of credit, bringing the total treasury value to around $6.42 billion.
Once the business combination closes, Trump Media, Yorkville, and Crypto.com will become majority owners. Yorkville Acquisition Corp. will also change its Nasdaq ticker to “MCGA,” which will later be used by the new treasury company.
Trump Media has also signed a cooperation deal with Crypto.com to integrate CRO into its platforms, Truth Social and Truth+. Users will be able to pay subscriptions with CRO, take part in new reward systems, and use Crypto.com’s wallet to turn rewards into tokens and other benefits. Subscribers who open accounts with the exchange will also get discounts or free services.
The launch of the CRO Strategy has already had a major effect on the market. Data from CoinMarketCap shows CRO jumped more than 27% in 24 hours, trading around $0.2047.
Devin Nunes, CEO of Trump Media, said, “We continue to be bullish on cryptocurrency, and we are excited to be partnering with a leading global cryptocurrency platform and one of the most sophisticated investor groups in Yorkville for this strategic initiative.”
Crypto.com CEO Kris Marszalek added, “The sheer size and structure of this project will encompass more than the entire current market capitalization of CRO, with the additional commitments of over $400 million in cash and a further $5 billion line of credit facility.”
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