Happycoin.club – The venture involving the company of U.S. President Donald Trump, Trump Media and Technology Group (TMTG), and the exchange Crypto.com will establish a Cronos treasury entity.
The involved parties plan to set up an organization named Trump Media Group CRO Strategy, which will focus on investing in Cronos (CRO), the cryptocurrency issued by Crypto.com. Upon its inception, this entity’s balance sheet will hold:
6.3 billion CRO coins, valued at $630 million based on the present exchange rate;
$200 million in fiat currency;
Warrants amounting to $220 million.
Trump Media Group CRO Strategy is set to secure a credit facility of $5 billion, presumably to empower the company’s management to acquire Cronos whenever deemed appropriate. Furthermore, the firm will act as a validator within the CRO blockchain, staking a portion of its coins in return for an annual reward yielding 6%. This indicates the enterprise will generate revenue rather than merely holding the cryptocurrency on its books.
It is noteworthy that the TMTG leadership opted to create this Cronos treasury firm despite prior losses stemming from investments in Crypto.com’s native cryptocurrency. As of September 30th, the company possessed Cronos valued at $146.68 million. Since that date, the digital asset has depreciated by 48%, and it is highly probable that its value will decline further amidst the current bearish trend in the virtual currency market. Nonetheless, contractual stipulations governing the acquisition of CRO prevent Trump’s firm from liquidating the coins before August 26, 2028.
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