Donald Trump’s media and technology company, Trump Media, has partnered with Yorkville Acquisition Corp and Crypto.com to launch a $6.42 billion CRO treasury initiative.
The three platforms will be collaborating to launch Trump Media Group CRO Strategy, Inc., a digital asset management firm with a primary objective of acquiring and holding CRO, the native token of the Cronos chain.
The announcement caused a ripple in the market, leading to a 25% increase in the cryptocurrency’s price. The asset surged from $0.16 to around $0.20 at the time of writing, according to data on CoinMarketCap.
CRO Treasury Strategy
Through the partnership, the three platforms aim to set a new benchmark as the largest publicly traded CRO treasury company, and potentially one with a market capitalization ratio that will surpass all existing digital asset treasuries.
Trump Media Group CRO Strategy, Inc. is set to receive substantial funding, comprising $1 billion worth of CRO tokens, $200 million in cash, and $220 million from compulsory exercise warrants. Additionally, YA II PN, Ltd., an affiliate of Yorkville, will pump a $5 billion equity line of credit into the treasury, further bolstering its financial foundation.
Following the partnership between the firms, Yorkville’s Class A ordinary shares are expected to trade on Nasdaq under the new symbol “MCGA”, which will later be transferred to the treasury upon closing. The exact timing of the ticker symbol change will be announced separately.
Meanwhile, all three companies have agreed to a one-year lock-up period on their shares and warrants to demonstrate their long-term commitment. After that, the shares and the warrants will undergo a phased release schedule over the next three years.
Trump Media’s Crypto Ventures
According to the Chairman and CEO of Trump Media, the partnership was formed to keep pace with the rapidly evolving financial markets, which are becoming increasingly digital and building digital asset treasuries.
“We continue to be bullish on cryptocurrency, and we are excited to be partnering with a leading global cryptocurrency platform and namesake of its industry in Crypto.com and one of the most sophisticated investor groups in Yorkville for this strategic initiative,” he commented.
The Donald Trump-owned company has continued to make a presence in the crypto space since its launch. In a recent development, the platform announced its plans to raise $3 billion to fuel its cryptocurrency ambitions. The initial $2 billion will come from the sale of new shares to investors, while the remaining amount will come from convertible bonds.
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