Trump Media and Technology Group (DJT), the parent company of the social media platform Truth Social, has finalized a significant purchase agreement with the cryptocurrency exchange Crypto.com. Under this agreement, DJT will acquire 684.4 million Cronos (CRO) tokens, valued at approximately $105 million. This transaction is noteworthy not only for its size but also because it represents about 2% of the circulating supply of the token.
The arrangement, detailed in a press release from the companies on Friday, involves a combination of cash and stock. Both the CRO tokens and shares of Trump Media will be locked for a designated period, securing their commitment to this partnership. In trading on the same day, both DJT stock and CRO tokens experienced minimal fluctuations.
This procurement is part of a larger collaboration between Trump Media and Crypto.com. As part of this strategic alliance, the cryptocurrencies will be integrated into Truth Social and its subscription model, Truth+. Specifically, CRO will be featured as a rewards mechanism within these platforms. DJT plans to utilize Crypto.com’s custody service for storing the acquired tokens and will stake them, aiming to generate additional income through this process.
Kris Marszalek, CEO of Crypto.com, emphasized that this agreement signifies the start of broader efforts to promote the adoption of CRO tokens. Devin Nunes, chair of Trump Media, referred to the CRO token as a “versatile utility” tool, highlighting its potential for facilitating payments and transfers.
This move aligns with Trump Media’s broader strategy to deepen its involvement in finance and digital assets. Following the establishment of a new entity called Trump Media Group CRO Strategy, the company is preparing to acquire up to 19% of the total circulating supply of CRO through a planned SPAC merger. This venture is poised to create a digital asset treasury focused on accumulating CRO tokens.
Furthermore, Trump Media is set to launch several crypto-focused exchange-traded funds (ETFs) and managed investment products, further solidifying its position in the cryptocurrency market. According to its second-quarter report, the company also holds $2 billion in Bitcoin, reflecting its significant investment in digital currencies.
