Trump Media Makes Big Crypto Play With Crypto.com Partnership and CRO Treasury

On Tuesday, August 26, Trump Media & Technology Group and Crypto.com announced their partnership with a SPAC to launch a new company aimed at using a treasury-style approach to the accumulation of Crypto.com’s native token, CRO.

Trump Media Deepens Crypto Ties With Crypto.com Partnership

In a bold move signaling the growing influence of cryptocurrency in mainstream media and business, Trump Media has announced a deal with Yorkville Acquisition Corp. As part of this deal, a new firm called Trump Media Group CRO Strategy will be created.

The owners of the new company will be Trump Media Group, Crypto.com, and Yorkville Acquisition. As a key part of the partnership, the new digital asset treasury firm will target the purchase of Cronos (CRO), which is the native token of Crypto.com.

Under the deal, Trump Media will purchase approximately 2 percent of Cronos (CRO), the native token of the Crypto.com exchange, totaling approximately $105 million. This will be the first and the biggest CRO treasury company. 

It was also announced that Crypto.com will purchase $50 million of Trump Media common stock. The two entities are also bound to a one-year mandatory lock-up following the completion of deals, the release said.

The company will reportedly use a total of $1 billion to buy CRO tokens to add to their treasury or about 19 percent of the market cap of the token. In addition, the company will have a cash and equivalents balance of $420 million and a line of credit worth $5 billion.

Trump Media To Offer Rewards in CRO

By holding the biggest CRO treasury, Trump Media is, in a way, demonstrating the fact that they trust the future of Cronos. Treasury positions in crypto, including CRO, allow businesses to reap direct benefits when the value of digital assets appreciates and apply these tokens in liquidity programs or customer rewards.

According to a release from Crypto.com, funds owned by Trump Media, Truth Social and Truth+ should provide the rewards system that utilizes the digital wallet framework of Crypto.com and utilizes CRO as a utility token.

This strategy is reflective of other corporations, as well as hedge funds, such as Michael Saylor’s Strategy, which have added investments in cryptocurrency portfolios, especially Bitcoin and Ethereum, to take advantage of the growth of the crypto market. 

The Crypto Adoption Push Continues

This deal from the Trump family business shows a similar bullish stance that has been adopted by the Trump administration since coming into power. Nunes, Trump Media CEO, responded to the news and stated that they are still optimistic about the cryptocurrency industry.

Nunes added that companies of every size and in every sector are future-proofing themselves by strategically building digital asset treasuries that are centered around assets that will constitute an extensive value proposition and are on the road to even more significant utility.

Cronos (CRO) Pumps in Reaction To the News

Following the news, CRO has grown by over 43 percent in the past 24 hours. The CRO token is now valued at over $0.226, pushing its market cap up to $7.59 billion, per data from CoinMarketCap. 

In a similar vein, the DJT stock of Trump Media has gained over 10 percent since the announcement was published, Google reports show.