The utility token of Crypto.com is rallying as the digital asset platform announces a new partnership deal with Trump Media and Technology Group (DJT).
Crypto.com is agreeing with Trump Media to launch a more than $6 billion digital asset treasury company primarily using the platform’s utility token Cronos (CRO), says Crypto.com CEO Kris Marszalek.
Under the deal, the two companies will invest in each other, with Trump Media buying $105 million in CRO and Crypto.com acquiring $50 million in DJT shares. Together, the two firms will establish Trump Media Group CRO Strategy, Inc., which is then expected to merge with SPAC Yorkville Acquisition Corp. and trade under the ticker MCGA.
Trump Media runs US President Donald Trump’s Truth Social streaming and social media platform.
Says the announcement,
“Expected funding for the digital asset treasury will consist of $1 billion in CRO (6,313,000,212 CRO, representing ~19% of the total CRO market cap as of announcement), $200 million in cash and $220 million cash-in mandatory exercise warrants, with an additional $5 billion equity line of credit from an affiliate of Yorkville, YA II PN, Ltd., which would make it the first and largest publicly traded CRO treasury company.”
Amid the news, CRO shot up to $0.210, a more than 55% gain from last week’s low of $0.135. CRO has since retraced and is trading for $0.196 at time of writing, up 21.7% on the day.
With a market cap of $6.6 billion, CRO is the 31st largest crypto project.
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Featured Image: Shutterstock/NextMarsMedia
