In a significant development within the cryptocurrency and media sectors, Trump Media and Technology Group, the organization behind the social media platform Truth Social, has finalized a $105 million purchase agreement with Crypto.com, a prominent digital asset exchange. This move follows an earlier announcement by Trump Media Group’s subsidiary, CRO Strategy Inc., about plans to create a $6.42 billion treasury focusing on Cronos (CRO).
According to a press release issued on September 5, the agreement entails Trump Media acquiring 684.4 million CRO tokens at an approximate price of $0.153 each. The payment for this transaction will be split evenly between stock and cash. Importantly, both the tokens and any shares of Trump Media received as part of the deal will be subjected to a lockup period, preventing immediate sale.
This acquisition represents about 2% of the circulating supply of CRO, distinct from an additional 19% that the related entity, Trump Media Group CRO Strategy, Inc., plans to acquire. Devin Nunes, CEO and Chairman of Trump Media, expressed optimism about the potential of CRO, particularly in relation to the company’s strategic objectives. Nunes stated that the company is enthusiastic about the partnership with Crypto.com and views CRO as a versatile utility token that could facilitate fast and secure transactions.
In regard to custodial and staking services, Trump Media plans to use Crypto.com Custody to hold the tokens. This setup not only provides a secure storage solution but also allows the company to stake its CRO holdings to generate yield. Crypto.com’s Co-Founder, Kris Marszalek, also expressed his excitement over the partnership, emphasizing the utility and potential value of the CRO token and the Cronos blockchain.
Furthermore, the purchase agreement incorporates a provision that could enable Truth Social to adopt CRO as a reward system, utilizing the infrastructure provided by Crypto.com’s wallet services.
As for CRO’s market performance, the token was trading at $0.26810 at the time of the announcement, reflecting a decline of 0.95% over the previous 24 hours and a 16.42% decrease over the week. In conjunction with this acquisition, Trump Media has also introduced the Trump Media Group CRO Strategy, Inc., which aims to merge with Yorkville Acquisition Corp to create a treasury vehicle specifically focused on managing and acquiring CRO.
This partnership and acquisition signal a new phase in the interplay between traditional media and the rapidly evolving cryptocurrency landscape, highlighting the growing significance and utility of digital assets in various applications.
