Nasdaq-listed SRM Entertainment is set to launch a Tron corporate treasury of up to $210 million and change its name to Tron Inc., the company announced on Monday.According to the announcement, SRM entered a securities purchase agreement with a private investor for a $100 million equity investment to fund its Tron (TRX) treasury strategy.
Tron founder Justin Sun will join the company as an adviser.As part of the deal, SRM Entertainment will issue 100,000 shares of its Series B convertible preferred stock.
This stock can be converted into a total of 200 million shares of common stock at a conversion price of $0.50 per share, and 220 million warrants to acquire up to an aggregate of 220 million shares of common stock at an exercise price of $0.50 per share.The strategic investment, valued at $210,000,000 upon full exercise of the warrants, enables SRM to build a substantial TRON Treasury Strategy, the company said.
Dominari Securities, the bank that structured the deal, reportedly has ties to the family of US President Donald Trump.
The FT reported that Trumps son, Eric Trump, is expected to take a role at the newly rebranded firm.Related: The Blockchain Group to raise $340M for Bitcoin treasuryTron Inc.
eyes staking and dividend strategyTron Inc.
plans to implement a dividend policy after implementing a TRX staking program with company assets.
In the announcement, Justin Sun, founder of Tron, said blockchains and stablecoins are seeing increasing real-world usage.
He added:With over 310 million international user accounts and average daily transactions YTD [year-to-date] exceeding $20 billion, TRON strives to be the protocol of choice for onchain settlement serving the mass populations worldwide.The announcement follows data from mid-May showing that stablecoin issuer Tether minted another $1 billion in USDT tokens on the Tron network, pushing its authorized USDT supply beyond that of Ethereum.
Related: Trump Medias Bitcoin treasury registration declared effective by SECUS regulators bury the hatchetThe development comes amid a regulatory thaw between the US Securities and Exchange Commission and Sun.
In an amended suit against Sun, the SEC claimed the Tron founder traveled extensively throughout the country, giving it jurisdiction.
In late February, the SEC and Sun requested that a federal court pause the regulators caseagainst Sun to facilitate settlement talks.
In April, he revealed that he owns the wallet that purchased the largest share of Trumps official memecoin, qualifying him for a dinner and reception with the US president.Magazine: Older investors are risking everything for a crypto-funded retirement