Trump Media and Technology Group, the parent company behind Truth Social, has now completed a $105 million purchase agreement with popular digital exchange Crypto.com. This development follows the previous announcement of the Trump Media Group CRO Strategy Inc. to build a $6.42 billion CRO treasury.
Trump Media Strategic Cronos (CRO) Partnership
According to a press release on September 5, Trump Media will acquire 684.4 million CRO at about $0.153 per token. The payment structure is 50% stock and 50% cash, and both the CRO tokens and Trump Media shares received will be subject to a lockup period (i.e., cannot be sold immediately).
This tranche represents about 2% of CRO’s circulating supply, separate from an additional 19% of supply that Trump Media Group CRO Strategy, Inc. (a related entity) is set to acquire. Commenting on this deal, Trump Media’s CEO and Chairman, Devin Nunes, has shared much potential of CRO in alignment with the company’s strategic goals.
Nunes said:
Trump Media is pleased to close this agreement and quickly begin to fulfill our strategic partnership with Crypto.com. We’re convinced that CRO has tremendous potential to spread widely as a versatile utility token and a superior form of safe, fast payment and money transfer, and we’re excited to add this innovative asset to our balance sheet.
Notably, the American media company will custody the tokens using Crypto.com Custody, which also allows them to stake CRO for yield (extra revenue). Crypto.com Co-Founder Kris Marszalek shares much optimism on this aspect of the deal, lauding the utility of the CRO token.
Marszalek said:
This is the first of many steps to driving utility and value for CRO and the Cronos blockchain. We are proud to provide support to Trump Media with our best-in-class custody solution and generate additional value through CRO’s staking model.
Meanwhile, the purchase agreement also presents a clause that allows Truth Social to adopt CRO as a pioneering reward system using Crypto.com wallet infrastructure.
CRO Price Overview
At the time of writing, CRO is trading at $0.26810, down by 0.95% in the past 24 hours, culminating in a 16.42% loss over the week. Alongside this purchase deal with Crypto.com, Truth Social’s parent company unveiled Trump Media Group CRO Strategy, Inc., a new entity set to merge with SPAC Yorkville Acquisition Corp to form a dedicated treasury vehicle focused on acquiring and managing CRO.
Featured image from Reuters, chart from Tradingview.com
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