Trump Media & Technology Group (TMTG), the organization behind former US President Donald Trump’s social media platform, Truth Social, has finalized a deal with the cryptocurrency exchange Crypto.com. This agreement establishes a collaborative financial strategy, centered around accumulating Crypto.com’s native Cronos (CRO) token. The initiative begins with TMTG purchasing 684.4 million CRO tokens.
According to a statement released Friday, TMTG will acquire these tokens at approximately $0.153 each, representing a total initial investment close to $105 million. The exchange will involve both stock and cash from each participating company, in equal proportion.
This announcement follows the creation of Trump Media Group CRO Strategy, a shared undertaking between Trump Media, Crypto.com, and Yorkville Acquisition. The purpose of this venture is to create a cryptocurrency treasury worth $6.4 billion, composed of CRO tokens.
The companies stated that the arrangement may enable Truth Social users to earn CRO tokens via a forthcoming rewards system built into the platform.
The Trump Media shares and CRO tokens exchanged as part of this deal will be subject to a “lockup period,” although the length of this period was not specified in the public statement.
This agreement signals a deeper connection between the cryptocurrency sector and individuals formerly associated with the Trump administration, a dynamic which has attracted scrutiny from several lawmakers concerning potential conflicts of interest due to his digital asset interests.
Crypto.com’s CEO, Kris Marszalek, was reportedly invited to attend a summit at the White House during Trump’s presidency, at the behest of Trump officials, to discuss the administration’s approach to digital currency regulation.
Related: Trump meets with Crypto.com CEO as firm drops SEC lawsuit
Back in March, Crypto.com and Trump Media established a preliminary, non-binding agreement regarding the potential launch of crypto-related exchange-traded funds (ETFs).
The market price of CRO was approximately $0.27 at the time of this writing, demonstrating a significant increase of over 66% since the collaborative treasury plan was revealed on August 26th.
Is Crypto.com still considering going public?
During an interview conducted on Tuesday, CEO Marszalek mentioned that Crypto.com possesses sufficient financial performance to pursue an initial public offering (IPO) within the United States. However, the company has not yet made a definitive decision. According to the CEO, Crypto.com generated $1.5 billion in revenue during 2024, and he anticipates even greater profitability in 2025.
Crypto.com continues to hold the naming rights to the former Staples Center in Los Angeles, which was officially renamed the Crypto.com Arena in 2021.
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