Cronos (CRO), the native crypto of the Cronos Chain, jumped to multi-year highs today following news that Trump Media and Technology Group had agreed to form a joint venture with Crypto.com that will invest in the token.
The companies seek to build a treasury of at least $6.42 billion.
Largest Publicly Traded CRO Treasury
The joint entity, the Trump Media Group CRO Strategy, will be a digital asset treasury company focused on the acquisition of Cronos, according to the official announcement. As part of the deal, Trump Media will purchase around $105 million worth of CRO, approximately 2% of the token’s total market cap, while Crypto.com will purchase $50 million in Trump Media stock.
The venture will trade under the ticker MCGA, which stands for “Make CRO Great Again,” Crypto.com CEO Kris Marszalek posited in a post on X. The 6.3 billion tokens, worth $1 billion at the time of announcement, will represent approximately 19% of the token’s supply, the companies said. The plan also involves a $5 billion equity line of credit from an affiliate of Yorkville.
The capital would make the Trump Media Group CRO Strategy the “first and largest publicly traded CRO treasury company,” the companies said in the announcement, adding that it would potentially become the “largest digital asset treasury company to market cap ratio in history.”
According to CoinGecko data, CRO jumped from around $0.16 to a new yearly high of $0.2869 after the announcement. CRO was the 25th largest digital asset by market cap, with its market cap surpassing $8.97 billion. Still, CRO remains 72.5% below its record high of $0.96 registered in November 2021.
The move comes as publicly traded companies across the globe are foraying into crypto, adding digital assets such as Bitcoin (BTC), Ether (ETH), and Solana (SOL) to their balance sheets.
The trend was pioneered by Michael Saylor’s Strategy (previously known as MicroStrategy), which began acquiring Bitcoin in 2020 to get better returns for its shareholders. Strategy has accumulated over $70 billion worth of BTC since then.
Trump Media’s plans to purchase CRO are not the first plans for a treasury. Back in July, the President Trump-linked company said it had purchased $2 billion in Bitcoin and BTC-related securities for its corporate treasury.
Source: https://zycrypto.com/cronos-surges-37-after-trump-media-and-crypto-com-unveil-6-42-billion-cro-treasury-deal/
