Tron Inc. Seeks to Raise $1 Billion for TRX Token Reserves
Tron Inc. has recently announced its plans to raise up to $1 billion in an effort to expand its TRX token reserves. The company, formerly known as SRM Entertainment, made this disclosure in a Form S-3 registration statement filed with the U.S. Securities and Exchange Commission.
The fundraising initiative will involve a combination of equity and debt instruments, including common shares, preferred stock, warrants, and other securities. Tron Inc. emerged after SRM Entertainment merged with Justin Sun’s blockchain project and rebranded, focusing on building a digital asset treasury anchored by the Tron blockchain’s native token, TRX.
Currently, the company holds over 365 million TRX tokens and aims to significantly increase its holdings through the proceeds from the new offering. The company stated that they view their TRX token holdings as long-term investments and intend to continue accumulating TRX tokens.
Following the merger, Tron Inc.’s stock saw a significant surge, with shares jumping over 23% and trading above $11.80. This substantial increase marked a significant rise from penny stock levels before the merger, with the stock rallying over 1,300% since June 10. As a result, the firm’s market capitalization now exceeds $200 million.
This move by Tron Inc. is part of a broader trend among public companies adopting crypto-focused treasury strategies. While many have focused on Bitcoin, there is a growing interest in altcoins. Recent examples include Metaplanet in Japan adding 780 BTC to its balance sheet, Satsuma Technologies in the UK raising $135 million for a similar initiative, and Bitcoin Treasury Corporation in Canada preparing to relist on the Toronto Stock Exchange after securing $92 million in funding.
In addition to Bitcoin, other digital assets are also gaining popularity. A new fund led by former executives of Coral Capital Holdings has raised $100 million to build a treasury position in BNB, while SharpLink Gaming has become one of the largest holders of Ethereum (ETH).
With its aggressive shift towards TRX and a billion-dollar capital plan in motion, Tron Inc. is distinguishing itself as one of the few public companies pursuing a corporate treasury strategy focused on an altcoin rather than Bitcoin. This strategic move positions Tron Inc. as a key player in the cryptocurrency market and sets the stage for future growth and expansion in the digital asset space.