Trump Media Group and Yorkville Acquisition Corp. have come together to create a new entity focused on acquiring and holding Cronos’s CRO token. This partnership, announced on August 26, will see the formation of Trump Media Group CRO Strategy, capitalized at $6.42 billion, comprising cash, warrants, and digital assets. The new company, in which Yorkville, Trump Media, and Crypto.com are founding partners, is set to list on Nasdaq under the ticker “MCGA”.
All founding shareholders have committed to a one-year lock-up period on their holdings, followed by a three-year gradual release schedule. As a result of this news, CRO’s value has risen by over 21% to $0.19452.
The new treasury will receive approximately $1 billion in CRO, representing about 19% of the token’s market capitalization at the time of the announcement. Additionally, partners plan to contribute $200 million in cash and $220 million through warrant exercises. Yorkville has secured a $5 billion equity line of credit through an affiliate for further token purchases.
The company aims to stake its CRO assets to generate recurring revenue, with the goal of creating a “flywheel effect”. As more CRO is acquired and staked, the token’s value is expected to increase, enabling additional fundraising and deeper integration across financial services.
Kris Marszalek, Co-Founder and CEO of Crypto.com, expressed enthusiasm about the project’s size and structure, emphasizing the significant commitments made to acquire and hold CRO.
This collaboration strengthens the ties between Trump Media and the Cronos ecosystem. Truth Social, Trump Media’s social media platform, is set to adopt CRO as its native token. Trump Media has disclosed $105 million worth of CRO purchases, while Crypto.com has acquired $50 million in Trump Media shares, bringing their combined CRO exposure to close to 7 billion tokens.
Devin Nunes, Chairman and CEO of Trump Media & Technology Group, highlighted the company’s bullish stance on cryptocurrency, noting the increasing digitalization of financial markets. He emphasized the strategic importance of establishing digital asset treasuries anchored by assets with a comprehensive value proposition and significant utility for the future.
This partnership signifies a significant step in the integration of digital assets within traditional media and highlights the potential for further collaboration between cryptocurrency platforms and mainstream companies.