cointelegraph.com
Tron Inc., the Nasdaq-listed company that previously traded as a penny stock under SRM Entertainment, is seeking approval from US regulators to raise $1 billion to expand its Tron ($TRX) holdings, following its reverse merger with Justin Sun’s blockchain project.
According to its Form S-3 filing with the US Securities and Exchange Commission, Tron Inc. plans to raise the funds through a mix of common stock, preferred stock, debt securities, warrants and rights — or any combination thereof.
The proceeds will go toward expanding the company’s $TRX treasury, which already holds over 365 million $TRX tokens following its reverse merger last month.
As previously reported by Cointelegraph, Tron Inc. initially aimed to build a $TRX reserve worth up to $210 million and had secured $100 million in equity investments to support those purchases.
In its SEC filing, Tron Inc. outlined a treasury reserve strategy consisting of cash, short-term equivalents, and $TRX tokens.
“We view our $TRX tokens holdings as long-term holdings and expect to continue to accumulate $TRX tokens,” the filing reads.
While $TRX fell 5% on Monday, shares of Tron Inc. surged more than 23% on news of its funding application, trading above $11.80. Formerly a penny stock under the name SRM Entertainment, the company has rallied sharply since its reverse merger and rebranding. According to Yahoo Finance, the stock is up over 1,300% since June 10.
The company’s market capitalization has swelled to over $200 million.
Related: Eric Trump is ‘biggest fan’ of Justin Sun, but denies involvement in Tron’s public venture
Crypto treasury strategies gain traction
Tron Inc. is among many companies actively building crypto-focused corporate treasuries. Most of these strategies center on Bitcoin ($BTC), inspired by Strategy Executive Chairman Michael Saylor’s playbook.
According to industry data, public companies, including Strategy and various Bitcoin miners, hold 923,327 $BTC on their balance sheets as of July 28.
On Monday, Japan’s Metaplanet added to its Bitcoin treasury with a purchase of 780 $BTC, bringing its total holdings to 17,132 $BTC.
Last week, the UK’s Satsuma Technologies raised $135 million to fund one of the country’s biggest Bitcoin treasury purchases.
In Canada, the Bitcoin Treasury Corporation plans to relist on the Toronto Stock Exchange after raising $92 million to acquire $BTC.
Crypto treasury strategies are also expanding to other assets. As Cointelegraph reported, former executives of Coral Capital Holdings have reportedly raised $100 million to establish a treasury focused on Binance’s $BNB ($BNB) token.
Related: Strategy expands preferred stock offering to $2B amid Bitcoin-fueled rally — Report