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- Trump Media, Crypto.com, and Yorkville Acquisition have launched a $6.42 billion Treasury company focusing on CRO acquisition.
- Founding partners of the company would have their holdings locked up for a year to support its growth.
Cronos (CRO) was a sight to behold in the market as it broke out from its “bearish shell” to “print” gains across all trading sessions, rising by 40% in the last 24 hours, 55% in the last seven days, 50% in the last 30 days, and 131% in the last 90 days. According to market data, the asset is currently trading at $0.22 with the potential to rise even more. As highlighted in our last analysis, CRO could surge by 1,100% once a bullish setup plays out.
Why the Sudden Breakout of Cronos (CRO)
The breakout is a reaction to a just-announced partnership between Yorkville Acquisition Corp., Trump Media & Technology Group Corp., and Crypto.com. According to a press release, these parties have entered into a definitive agreement to establish a digital asset treasury company called Trump Media Group CRO Strategy, Inc.
Per the details, the treasury company would focus on the acquisition of CRO, which is the native token of the Cronos ecosystem. Technically, Yorkville, Trump Media, and Crypto.com, would operate as founding partners and also have a majority ownership in the treasury.
According to the release, the Trump Media Group CRO Strategy would be funded with 6,313,000,212 CRO ($1 billion at the time of the announcement). Mathematically, this is equivalent to 19% of the asset’s market cap. Additionally, the funding would comprise $220 million “cash in mandatory exercise warrant.” Another $200 million in cash would be allocated coupled with a $5 billion equity line of credit, making it $6.42 billion. Fascinatingly, the $5 billion would come from YA II PN, Ltd., an affiliate of Yorkville.
The funds ($6.42 billion) would be used to establish the CRO treasury, making it the largest by market cap ratio. Conveying this information, the CEO of Crypto.com, Kris Marszalek, disclosed that the Trump Technology Media Group separately holds $105 million worth of CRO, bringing their total holdings to about 7 billion tokens.
As indicated in our recent publication, Trump Media even seeks to acquire more cryptos. To effectively carry out this plan, it is exploring ways to raise $3 billion for this course.
More Interesting Facts About the Partnership
Kris also made an interesting revelation that would make CRO a “hot cake” among investors. According to him, the token would become the platform token of Truth Social as part of the agreement.
Another interesting revelation is that all the founding partners have agreed to lock up their holdings for 12 months. After this, they would be able to partially unlock their assets every 6 months.
Commenting on this, Chairman and CEO of Trump Media & Technology Group Devin Nunes highlighted that they would continue to be bullish on the crypto.
Financial markets are becoming increasingly digital every day, and companies of all sizes and sectors are strategically planning for the future by establishing digital asset treasuries anchored by assets that have created a comprehensive value proposition and are poised for even greater utility. We continue to be bullish on cryptocurrency…
In our recent update, CNF hinted that Trump Media has been cleared by the regulators to also proceed with its Bitcoin Treasury plans.
Prior to this development, Crypto.com had partnered with Trump Media to launch a series of Exchange Traded Funds (ETFs) for CRO in 2025, as noted in our earlier discussion. Later, asset management firm 21Shares was reported by CNF to have launched a regulated CRO Exchange Traded Product (ETP) for institutional clients.