Trump Media, Crypto.com plan $6.4 billion CRO token treasury based largely on equity line of credit

The Block

2025-08-27 01:17:24

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Trump Media & Technology Group Corp., Crypto.com and special purpose acquisition company (SPAC) Yorkville Acquisition Corp. said on Tuesday they have entered into a definitive agreement to form a digital asset treasury firm focused on acquiring CRO, the native token of the Cronos blockchain.

Funding for the company, which is being rebranded as Trump Media Group CRO Strategy, is expected to comprise of $1 billion in CRO tokens, $200 million in cash, $220 million in warrants, and a further $5 billion equity line of credit from Yorkville affiliate YA II PN Ltd, according to a statement. The $1 billion worth of CRO equates to roughly 6.3 billion tokens, which was about 19% of the total supply as of Tuesday.

While the companies described the deal as being worth $6.4 billion, most of the capital earmarked for CRO tokens depends on future drawdowns from the credit line. There is little information available online regarding the activities of YA II PN, Ltd., the entity said to be providing the $5-billion line of credit.

If completed, the deal would make it the largest CRO-focused treasury firm to date. Trump Media, Crypto.com and Yorkville will serve as founding shareholders. Yorkville Acquisition Corp. plans to change its Nasdaq ticker from YORK to MCGA ahead of closing. The parties have agreed to a one-year lock-up on their founding shares and warrants, followed by a three-year "restrictive" release schedule.

"The sheer size and structure of this project will encompass more than the entire current market capitalization of CRO," Crypto.com co-founder and CEO Kris Marszalek said in Tuesday's statement.

Trump Media Group CRO Strategy also plans to run a validator node on the Cronos network, reinvesting staking rewards to grow holdings over time.

Trump Media’s separate CRO deal with Crypto.com

Alongside the SPAC deal, Trump Media struck a separate agreement to acquire roughly 684 million CRO (valued at $105 million at announcement) in exchange for $50 million in cash and 2.8 million shares of Trump Media stock (ticker DJT). According to a filing with the Securities and Exchange Commission, Trump Media bought the CRO tokens from Foris Holdings U.S., Inc., which appears to be linked to Crypto.com.

The CRO tokens owned by Trump Media Group CRO Strategy will be held with Crypto.com Custody and staked to generate yield.

Trump Media also plans use CRO as the utility token for its Truth Social and Truth+ platforms. Using Crypto.com’s wallet infrastructure, the company will roll out a rewards system that lets users convert in-app “gems” into CRO and other perks. Future integrations could enable CRO-based subscription payments and co-marketing campaigns offering discounts to Truth+ users.

Trump Media CEO Devin Nunes said his company continues to be bullish on crypto, while Crypto.com's Marszalek called the integration "a historic moment for the Cronos blockchain." Cronos Labs, the developer of the Cronos blockchain, counts Crypto.com as a key partner, with the exchange having built multiple products on the network.

Clear Street is serving as exclusive capital markets advisor to Yorkville Acquisition Corp. DLA Piper LLP (US) is serving as legal counsel to Yorkville Acquisition Corp. and Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal advisor to Crypto.com.

In connection with the purchase and cooperation agreements, DLA Piper LLP (US) served as legal counsel to Trump Media.

Trump Media’s DJT stock rose over 6% to $18.31 as of 12:59 p.m. ET, according to Yahoo Finance, while the CRO token had gained more than 25% to $0.20 in the past 24 hours, according to The Block’s CRO price page.

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