Key Insights:
- Justin Sun’s TRON and SRM Entertainment entered a securities purchase agreement to build a TRON strategic reserve.
- The entities have announced a reverse merger to rename the firm as Tron Inc, boosting adoption and TRX price.
- Eric Trump is likely to take a role at the new company as the deal was orchestrated by Dominari Securities.
Crypto billionaire Justin Sun’s TRON plans to go public in the United States, with Eric Trump expected to take a leadership role at the new firm. The move comes after the US Securities and Exchange Commission (SEC) dropped its fraud investigation into Sun’s companies. TRON price has jumped 3% after the announcement by the firm.
Tron News: Justin Sun and Trump Family’s Big Crypto Deal
According to the Financial Times on June 16, two sources have revealed that Justin Sun’s TRON will go public in a reverse merger with Nasdaq-listed SRM Entertainment. The deal was facilitated by Dominari Securities, an investment bank with ties to Donald Trump Jr and Eric Trump.
SRM Entertainment to change its name to Tron Inc. as part of a securities purchase agreement with Justin Sun. The company will use a $100 million equity investment to initiate a TRON token (TRX) treasury strategy.
Justin Sun was named as an advisor to the company. Also, Eric Trump is expected to take a leadership role at the new firm, as per the FT.
The company added that it also intends to implement a dividend policy upon the successful implementation of the TRX staking program.
Justin Sun and SRM’s TRON Treasury Plan
SRM Entertainment will issue an aggregate of 100,000 shares of its Series B convertible preferred stock, convertible into a total of 200 million shares of common stock at a conversion price of $0.50 per share. Also, 220 million warrants to acquire up to 220 million shares of common stock at an exercise price of $0.50 per share.
The strategic investment valued at $210 million will enable SRM to build a substantial TRON treasury strategy. The company asserted that it will create long-term value for shareholders. It’ll be by focusing on the global adoption of blockchain and digital innovation.
With over 310 million international user accounts and average daily transactions YTD exceeding $20 billion. TRON strives to be the protocol of choice for onchain settlement serving the mass populations worldwide, said Justin Sun.
Rich Miller, CEO of SRM Entertainment, said the company is excited to invest in the technology as it gains wider adoption globally. He added, “TRON has become the industry leader for cross border settlement in US dollar stablecoin.”
SRM Entertainment (SRM) stock price jumped more than 340% to $6.42 as the market opened on Monday. The stock closed at $1.39 on Friday.
TRX Price Begins Record Rally
TRX price jumped 3% after the announcement, with the price trading at $0.2812 at the time of writing. The 24-hour low and high were $0.2701 and $0.2899, respectively. Furthermore, the trading volume has increased by 214% in the last 24 hours, indicating a massive interest among traders.
The derivatives market recorded similar buying pressure for TRON tokens, as per CoinGlass data. At the time of writing, the total TRX futures open interest shot up 27% to $398.21 million in the last four hours.
Recently, TRX rocketed 6% after World Liberty Financial issued its USD 1 stablecoin on the Tron blockchain. However, the price recovery faded amid uncertainty in the market.
Although some may see it as just another addition to the stablecoins market, Justin Sun believes that USD1 marked a major step forward for stablecoins.
