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WEST PALM BEACH - Yorkville Acquisition Corp. (NASDAQ:YORK), Trump Media & Technology Group Corp. (NASDAQ, NYSE Texas:DJT) and Crypto.com announced Tuesday they have entered into a definitive agreement to establish Trump Media Group CRO Strategy, Inc., a digital asset treasury company focused on acquiring Cronos ecosystem’s native cryptocurrency token (CRO).
The business combination will create what the companies describe as the first publicly traded CRO treasury company. Expected funding includes $1 billion in CRO tokens (representing approximately 19% of total CRO market cap), $200 million in cash, $220 million in mandatory exercise warrants, and a $5 billion equity line of credit from Yorkville affiliate YA II PN, Ltd. The announcement has generated significant market interest, with DJT’s robust average daily trading volume of 153.79 million shares over the past three months reflecting strong investor engagement.
Following the transaction, Trump Media Group CRO Strategy will be majority-owned by the three founding partners, who have agreed to a one-year lock-up period on their shareholdings, followed by a three-year restrictive release schedule.
"Financial markets are becoming increasingly digital every day, and companies of all sizes and sectors are strategically planning for the future by establishing digital asset treasuries," said Devin Nunes, Chairman and CEO of Trump Media & Technology Group, according to the press release.
The company plans to implement a digital asset treasury strategy centered on accumulating CRO tokens and operating a validator node on the Cronos blockchain to generate staking rewards.
Yorkville Acquisition Corp. will apply to have its Class A ordinary shares trade on Nasdaq under the symbol MCGA, with this symbol transferring to Trump Media Group CRO Strategy upon closing of the business combination.
Clear Street is serving as exclusive capital markets advisor to Yorkville Acquisition Corp., with DLA Piper LLP (US) serving as legal counsel. Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal advisor to Crypto.com.
The companies have filed registration statements with the SEC regarding the business combination, according to the press release.
In other recent news, Trump Media and Technology Group Corp. has been active with several significant developments. The company announced it has secured approximately $2.3 billion through debt and equity subscription agreements with around fifty investors, which will be used to develop a Bitcoin treasury and for general corporate purposes. Trump Media has also filed registration statements with the SEC for multiple cryptocurrency ETFs, including the Truth Social Bitcoin ETF and the Truth Social Crypto Blue Chip ETF. The Bitcoin ETF will hold bitcoin directly, with Crypto.com serving as the custodian. Meanwhile, the Crypto Blue Chip ETF will allocate 70% of its assets to Bitcoin, 15% to Ether, 8% to Solana, 5% to Cronos, and 2% to Ripple. Additionally, the company has authorized a stock buyback program of up to $400 million, allowing the repurchase of common stock and warrants through open market transactions. These repurchases will be executed at the company’s discretion, in accordance with SEC regulations.
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