Trump Media and Technology Group (TMTG), the owner of former US President Donald Trump’s Truth Social platform, has entered into a business combination with cryptocurrency exchange Crypto.com and blank cheque company Yorkville Acquisition.
The three firms announced on Tuesday that they have signed a definitive agreement to form Trump Media Group CRO Strategy, a digital asset treasury company. The new venture will primarily focus on acquiring Cronos (CRO), the native cryptocurrency of Crypto.com’s Cronos blockchain.
$6.42 billion treasury plan
According to the announcement, Trump Media Group CRO Strategy will be majority-owned by TMTG, Crypto.com and Yorkville. Together, they plan to build a treasury worth at least $6.42 billion.
The initial capital will include $1 billion in CRO tokens, $420 million in cash and warrants, and a $5 billion credit line from a Yorkville affiliate.
The partners said this would make CRO Strategy the “first and largest publicly traded CRO treasury company”, and potentially the largest digital asset treasury in history when measured by market capitalisation ratio.
Nasdaq listing plans
As part of the deal, Yorkville Acquisition intends to list its Class A ordinary shares on Nasdaq under the ticker MCGA.
Once the business combination is completed, the new company plans to allocate “substantially all of the company’s cash reserves” to buying more CRO. The strategy is designed to generate long-term value through yield-bearing digital assets rather than traditional non-productive holdings.
Validator node to boost rewards
The new treasury company also plans to establish and operate a validator node on the Cronos proof-of-stake blockchain. Validator nodes play a role in securing the network and governing transactions.
By running its own validator, the firm expects to earn staking rewards, which will be reinvested to compound its CRO holdings and cover operational costs.
According to the announcement, the validator will be maintained by a crypto-native team familiar with the Cronos ecosystem, with the goal of maximising returns and attracting additional CRO delegations from outside holders.
