Trump Media & Technology Group Corp. (NASDAQ:DJT) has struck a deal with Crypto.com and Yorkville Acquisition Corp. to establish a cryptocurrency treasury company centered on holding Cronos (CRYPTO: CRO) tokens, according to an SEC filing on Tuesday.
What Happened: Under the agreement, Crypto.com will transfer 684.4 million CRO tokens, valued at roughly $105 million, to Trump Media in exchange for 2.8 million Trump Media shares and $50 million in cash, Bloomberg reported.
All shares held by Trump Media, Crypto.com, and Yorkville will face a mandatory one-year lock-up period following the transaction's close.
The venture, to be named Trump Media Group CRO Strategy Inc., will follow the model pioneered by Michael Saylor's Strategy Inc. (NASDAQ:MSTR), raising capital specifically to buy and hold cryptocurrencies.
Funding for the new company is expected to include 6.3 billion CRO tokens, $200 million in cash, $220 million in mandatory warrants, and a $5 billion equity line of credit from a Yorkville affiliate.
Also Read: Bitcoin To Hit $1.3 Million By 2035, Bitwise Forecasts
Why It Matters: Shares of Trump Media rose 7.9% in premarket trading in New York, while Yorkville Acquisition stock gained 3.5%.
Cronos is the native token of the Cronos blockchain, supported by Crypto.com.
The exchange's CEO, Kris Marszalek, met with Donald Trump at Mar-a-Lago after his election victory last year, and the company later contributed $1 million to his inaugural committee.
Crypto.com has previously worked with Trump Media on several proposed crypto-linked ETFs, including a "Crypto Blue Chip" fund designed to provide exposure to Cronos, Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and other major digital assets.
The newly formed company intends to list on Nasdaq under the ticker symbol MCGA.
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