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SRM Entertainment, listed on the Nasdaq, is poised to initiate a Tron corporate treasury amounting to $210 million and will rebrand itself as Tron Inc., the company revealed on Monday.
As per the statement, SRM has entered into a securities purchase agreement with a private investor for a $100 million equity infusion to finance its Tron (TRX) treasury initiative. Tron’s creator Justin Sun will also join the firm as a consultant.
Under the agreement, SRM Entertainment will issue 100,000 shares of its Series B convertible preferred stock. This equity may be transformed into a total of 200 million shares of common stock at a conversion price of $0.50 per share, along with 220 million warrants to acquire up to an excess of 220 million shares of common stock at an exercise price of $0.50 per share.
“The strategic investment, appraised at $210,000,000 upon complete execution of the warrants, allows SRM to establish a significant TRON Treasury Strategy,” the company commented. Dominari Securities, the financial institution that arranged the deal, reportedly has connections to the family of US President Donald Trump. The FT noted that Trump’s son, Eric Trump, is anticipated to assume a position at the newly renamed company.
Related: The Blockchain Group to raise $340M for Bitcoin treasury
Tron Inc. Pursues Staking and Dividend Plans
Tron Inc. intends to establish a dividend strategy following the implementation of a TRX staking initiative with company resources. In the announcement, Justin Sun, the founder of Tron, mentioned that blockchains and stablecoins are experiencing growing real-world adoption. He further stated:
“With over 310 million international user accounts and average daily transactions YTD [year-to-date] surpassing $20 billion, TRON aims to be the protocol of choice for on-chain settlement serving the global population.”
The statement comes after data from mid-May indicating that stablecoin issuer Tether minted another $1 billion in USDT tokens on the Tron network, elevating its authorized USDT supply above that of Ethereum.
Related: Trump Media’s Bitcoin treasury registration ‘declared effective’ by SEC
US Regulators Reach an Accord
This progression arises amid a regulatory warming between the US Securities and Exchange Commission and Sun. In a revised lawsuit against Sun, the SEC asserted the Tron founder “traveled extensively” throughout the nation, thereby granting it jurisdiction.
In late February, the SEC and Sun requested that a federal court suspend the regulator’s case against Sun to enable settlement discussions. In April, he disclosed that he possesses the wallet that purchased the largest share of Trump’s official memecoin, qualifying him for a dinner and reception with the US president.
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