Trump Media & Crypto.com Forge New Alliance
Trump Media & Technology Group and Crypto.com have entered into an agreement with a special purpose acquisition company to establish a new venture aimed at implementing a treasury-style approach to accumulate the native token CRO of the cryptocurrency platform. This development further strengthens the connection between former U.S. President Donald Trump and the cryptocurrency sector. The partnership reflects a growing trend among companies to adopt strategies similar to that of Michael Saylor’s Strategy, previously known as MicroStrategy, which began its bitcoin accumulation in 2020. Currently, MicroStrategy’s bitcoin assets are valued at approximately $100 billion, and its stock price has surged fivefold alongside bitcoin’s rise in 2024. On Tuesday afternoon, shares of Trump Media increased by 6.6%, reaching $18.36.
New Venture Set to Go Public
The newly formed entity, named Trump Media Group CRO Strategy, will become publicly traded through a merger with Yorkville Acquisition Corp and will be listed on the Nasdaq under the ticker symbol MCGA. Following this announcement, the CRO token experienced a significant increase, rising 29.6% to reach 20 cents, according to CoinGecko data. Conversely, shares of Yorkville slid by 2.2%, settling at $10.42. The market capitalization of Cronos stands at $6.8 billion, which is a small fraction of the overall $3.9 trillion global cryptocurrency market, as reported by CoinGecko.
Partnership Aims to Institutionalize CRO
Trump Media, which operates Donald Trump’s Truth Social platform, previously announced its collaboration with Crypto.com to create exchange-traded funds and related products under the Truth.Fi brand. Alice Liu, head of research at CoinMarketCap, noted that by embedding CRO into the reward ecosystem and corporate reserves of Truth Social, Trump Media is effectively treating the token as a formal part of its treasury strategy. This move serves as another example of a corporate entity integrating a native token into its financial framework.
Recent Trends in the Crypto Space
This latest initiative from Trump Media follows a recent vote from holders of digital tokens issued by World Liberty Financial, a cryptocurrency venture associated with the Trump family, which approved the tokens for trading, potentially enhancing the value of the president’s cryptocurrency assets. The crypto sector in the U.S. has been experiencing substantial growth, partly due to favorable regulations established during the Trump administration. On Tuesday, Canary Capital, a digital asset management firm, submitted a proposal to launch an exchange-traded fund that tracks the price of the $TRUMP meme coin, a cryptocurrency linked to Trump’s popularity.
SPACs and Bitcoin Accumulation Strategies
Similar to Trump Media’s CRO initiative, a number of other companies with significant bitcoin or cryptocurrency reserves have been pursuing comparable ventures in recent months. Many of these firms are opting for listings on U.S. exchanges by collaborating with special purpose acquisition companies (SPACs), as the market has been valuing bitcoin at a higher premium. In April, a SPAC backed by Cantor Fitzgerald joined forces with Tether and Japan’s SoftBank Group to form a $3.6 billion enterprise focused on accumulating bitcoin.
Funding and Investments in Crypto Ventures
The financing for the Trump Media cryptocurrency initiative will include $1 billion in Cronos tokens, $200 million in cash, $220 million in warrants, and a $5 billion equity line of credit from a Yorkville affiliate. Additionally, Trump Media has committed to acquiring $105 million in Cronos for its balance sheet, while Crypto.com plans to purchase $50 million in common stock from Trump Media. In a separate development, 1789 Capital, an investment firm founded by former Bank of America executive Omeed Malik, which includes Donald Trump Jr. as a partner, has announced its investment in the predictions market platform Polymarket, with Trump Jr. set to join Polymarket’s advisory board.
