Trump Media & Technology (DJT) has teamed up with cryptocurrency exchange Crypto.com and the special purpose acquisition company (SPAC) Yorkville Acquisition Corp. (YORK). The partnership will create a new digital asset treasury company, Trump Media Group CRO Strategy, Inc., that will manage the Cronos (CRO-USD) cryptocurrency. Following the news, the price of the CRO token surged by 30%, while DJT shares climbed 6%.
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This deal is part of a growing trend where more public companies are adding cryptocurrencies such as Bitcoin (BTC-USD) and Ether (ETH-USD) to their balance sheets.
Key Deal Terms
The new entity will be backed by a funding package exceeding $6.4 billion. The funding includes $1 billion worth of CRO tokens, $200 million in cash, $220 million in warrants, and a $5 billion equity line of credit.
Yorkville Acquisition plans to list the new entity on Nasdaq under the ticker symbol MCGA, pending regulatory approval.
As part of the partnership, Trump Media will integrate Cronos as a platform token on its Truth Social and Truth+ platforms, allowing users to earn and use the token within a new rewards system.
To show long-term commitment, all three partners have agreed to a one-year lock-up period on their founding shares and warrants, followed by a three-year gradual release schedule. The firm also plans to run a validator node on the Cronos blockchain, showing deeper involvement in network governance.
Is DJT Stock a Good Buy?
Using TipRanks’ technical analysis tool, the indicators seem to point to a negative outlook for DJT. The summary section pictured below shows that three indicators are Bullish, compared to five Neutral and 14 Bearish indicators.
