Tron Inc., the Nasdaq-listed company formerly trading as penny stock SRM Entertainment, is seeking regulatory approval in the US to raise $1 billion to expand its TRX holdings following a reverse merger with Justin Sun’s blockchain project. According to its Form S-3 filing with the US Securities and Exchange Commission (SEC), Tron Inc. plans to raise the funds through a combination of common stock, preferred stock, debt securities, warrants, and rights. The proceeds will be used to grow the company’s TRX treasury, which currently holds over 365 million TRX tokens after the merger last month. As previously reported by Cointelegraph, Tron Inc. initially targeted building a TRX reserve valued up to $210 million and had secured $100 million in equity investments to support these purchases. In its SEC filing, Tron Inc. described its treasury reserve strategy as a mix of cash, short-term equivalents, and TRX tokens. The company stated, “We view our TRX tokens holdings as long-term holdings and expect to continue to accumulate TRX tokens.” While TRX token price dropped 5% on Monday, Tron Inc.’s shares surged over 23% following news of the funding application, trading above $11.80. Since rebranding from SRM Entertainment and completing the reverse merger, the stock has rallied more than 1,300% since June 10, according to Yahoo Finance. The company’s market capitalization has grown to over $200 million.

Growing Interest in Crypto Treasury Strategies

Tron Inc. is part of a growing trend of companies actively building crypto-focused corporate treasuries. Many of these strategies focus on Bitcoin, inspired by Strategy Executive Chairman Michael Saylor’s approach. Industry data shows that public companies, including Strategy and various Bitcoin miners, collectively hold 923,327 BTC on their balance sheets as of July 28. Recently, Japan’s Metaplanet expanded its Bitcoin treasury by purchasing 780 BTC, bringing its total to 17,132 BTC. Meanwhile, UK’s Satsuma Technologies raised $135 million to fund one of the country’s largest Bitcoin treasury purchases. In Canada, Bitcoin Treasury Corporation plans to relist on the Toronto Stock Exchange after raising $92 million to acquire BTC. Crypto treasury strategies are also expanding beyond Bitcoin. Former executives of Coral Capital Holdings have reportedly raised $100 million to establish a treasury focused on Binance’s BNB token.

Source: Cointelegraph

Frequently Asked Questions

What is Tron Inc. planning to do with the $1 billion they aim to raise?

Tron Inc. is seeking to expand its TRX holdings by raising the funds through various financial instruments such as common and preferred stock, debt securities, warrants, and rights.

Why is Tron Inc. interested in building its TRX treasury?

Tron Inc. views its TRX token holdings as long-term holdings and aims to continue accumulating TRX tokens as part of its treasury reserve strategy.

What impact did the news of the funding application have on Tron Inc.’s stock and TRX token price?

Following the announcement, Tron Inc.’s shares surged over 23%, while the TRX token price experienced a 5% drop.

Crypto Market's Take

The move by Tron Inc. to expand its TRX holdings aligns with the growing trend of crypto treasury strategies among companies, a trend thoroughly covered by Crypto Market News on our site. This strategic allocation of cryptocurrency within corporate treasuries, similarly followed by giants like Metaplanet and Satsuma Technologies, showcases the mainstream acceptance and potential long-term benefit of holding cryptocurrencies in corporate reserves. Furthermore, our platform offers AI-powered tools and cryptocurrency trading solutions that greatly assist companies and investors looking to optimize their crypto portfolios in the volatile market.

Tron Inc. seeks B to grow TRX holdings as stock rallies