In a significant endorsement of Tron Inc.’s investment strategy, crypto billionaire Justin Sun has highlighted the company’s approach to accumulating the TRX token as a core treasury asset. The endorsement comes as TRX has recently shown resilience in the market, outperforming Bitcoin, which is trading around $71,604.23. Sun shared a brief yet impactful message on social media platform X, urging supporters to “keep going” amid market fluctuations.
On Wednesday, Nasdaq-listed Tron Inc. revealed it had acquired 175,507 TRX tokens at an average price of $0.28, marking a new investment of just over $49,000 in the cryptocurrency. This latest acquisition brings the company’s total TRX holdings to an impressive 679.9 million tokens, valued at approximately $540 million. The firm has expressed intentions to continue expanding its TRX reserves, emphasizing the goal of enhancing long-term value for its shareholders.
Tron Inc. was formed through a reverse merger between SRM Entertainment and an entity related to Tron, evolving into a publicly traded company centered on blockchain-integrated treasury strategies. This model aligns with strategies employed by other Nasdaq-listed firms that have pioneered the concept of accumulating digital assets as reserve assets, particularly Bitcoin, which garnered attention after the company began investing in it in August 2020.
Justin Sun’s backing of the accumulation strategy comes as TRX has experienced price fluctuations, having peaked at nearly 45 cents earlier this year before retracting to its current price around 28 cents. Remarkably, TRX has demonstrated notable stability, registering only a 1.3% decline this year, contrasting sharply with Bitcoin’s nearly 19% drop in the same timeframe, according to data from CoinDesk. This comparative outperformance has prompted some analysts to consider TRX as a defensive asset in the current volatile crypto market.
As Tron Inc. continues to bolster its TRX holdings, the strategic focus aligns with broader trends in the cryptocurrency market, providing investors with potential avenues for stability amidst ongoing fluctuations.
