Trump Media Group has reached a deal with Yorkville Acquisition Corp., a Nasdaq-listed blank check company, to form a new entity focused on acquiring and holding Cronos’s CRO token, according to an Aug. 26 statement.
The proposed company, Trump Media Group CRO Strategy, will be capitalized with around $6.42 billion, which is a mix of cash, warrants, and digital assets.
At closing, ownership will be shared between Yorkville, Trump Media, and Crypto.com, which are entering as founding partners. The company intends to list on Nasdaq under the ticker “MCGA.”
Notably, all founding shareholders have agreed to a one-year lock-up on their holdings, followed by a three-year gradual release schedule.
According to CryptoSlate’s data, CRO’s value jumped more than 21% to $0.19452 as of press time.
CRO Treasury
Under the agreement, the new treasury will receive roughly $1 billion in CRO, equal to about 19% of the token’s market capitalization at the time of announcement.
In addition, partners plan to contribute $200 million in cash and another $220 million through warrant exercises. Yorkville has also arranged a $5 billion equity line of credit via an affiliate, providing a mechanism for further token purchases.
The company plans to stake its CRO assets to generate recurring revenue. According to executives, the goal is to create a “flywheel effect.” This means that as more CRO is acquired and staked, the token’s value could rise, enabling further fundraising and deeper integration across financial services.
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Author: Oluwapelumi Adejumo
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