Trump Media has purchased $105 million worth of Cronos (CRO) tokens, kicking off a major digital asset strategy in partnership with Crypto.com.
Key Takeaways
- Trump Media & Technology Group acquired 684.4 million CRO tokens, worth about $105 million, from Crypto.com.
- The deal includes both a cash and stock exchange, with a lockup period for the tokens and shares.
- Trump Media launched a new entity, CRO Strategy, Inc., aiming to build a $6.4 billion CRO treasury.
- CRO will be integrated into Truth Social and Truth+, with plans for staking, rewards, and future ETFs tied to crypto.
What Happened?
Trump Media & Technology Group (DJT), the parent company of Truth Social, finalized a $105 million deal with Crypto.com to purchase 684.4 million Cronos (CRO) tokens. The transaction was structured as a mix of cash and stock, and both the CRO tokens and Trump Media shares will remain under a lockup period for an undisclosed time. This move kicks off a wider partnership that aims to transform Truth Social into a fintech and crypto hub.
A Strategic Leap Beyond Social Media
Trump Media is not just parking the tokens in its treasury. It has ambitious plans to use CRO across its digital platforms, including Truth Social and Truth+, where users will soon be able to earn rewards and possibly acquire CRO through loyalty programs. The integration will be powered by Crypto.com’s wallet infrastructure, which allows for secure storage and staking. This approach enables Trump Media to generate yield while holding CRO, turning a passive asset into a revenue stream.
In a press release, Trump Media Chairman Devin Nunes described CRO as a “versatile utility” that supports fast and efficient payments. On the other side, Crypto.com CEO Kris Marszalek said the deal is a key milestone in expanding CRO’s real-world utility beyond trading.
CRO Strategy, Inc. and a Billion-Dollar Vision
To manage its new holdings, Trump Media has formed a separate entity called CRO Strategy, Inc. This company is already moving toward a merger with Yorkville Acquisition Corp, a Nasdaq-listed SPAC, to access more capital. The goal? To scale the CRO treasury from $105 million today to as much as $1 billion, eventually acquiring up to 19 percent of the token’s circulating supply.
This bold move comes as part of a larger pivot into digital finance. Trump Media recently disclosed a $2 billion Bitcoin reserve in its Q2 financial report and is also planning to roll out multiple crypto-focused ETFs and managed investment products in the future.
Political and Market Reactions
The deal also highlights the growing links between the Trump camp and the crypto industry. Marszalek attended a March summit at the White House to discuss crypto policy with Trump officials. Earlier this year, Crypto.com signed a non-binding agreement with Trump Media to explore launching exchange-traded crypto funds.
Market reaction to the news was swift. The price of CRO surged more than 66 percent after the deal was first announced on August 26, climbing from around $0.153 to $0.27. Although prices and stock values stabilized afterward, the strategic implications of the move have been widely discussed in financial circles.
CoinLaw’s Takeaway
I’ve covered countless corporate crypto plays, but this one really stands out. Trump Media is not just experimenting with digital assets. They are restructuring their entire business model around them, with a long-term strategy, staking for income, and plans to develop ETF products. It’s a full-on fintech transformation, and CRO is at the heart of it.
In my experience, companies that take custody, crypto staking, and product integration seriously are the ones that often move the needle in crypto adoption. I found the $6.4 billion treasury target especially bold. That level of commitment can push real adoption for CRO and potentially set the tone for how media firms enter the blockchain space.
