In brief
- SRM Entertainment, a Florida-based producer of theme park merchandise, plans on renaming itself Tron, while tapping Justin Sun as an advisor, and adopting TRX as a treasury reserve asset.
- The company’s stock price soared of 550% after the moves were announced.
- Trump-link investment bank Dominari Securities is spearheading the deal.
Tron, the layer-1 network founded by controversial crypto entrepreneur Justin Sun, is set to debut on the Nasdaq through a reverse merger with SRM Entertainment, a purveyor of theme-park merchandise, The Financial Times reported on Monday.
Citing two people briefed on the matter, the outlet reported that Dominari Securities, a boutique investment bank with ties to U.S. President Donald Trump’s two eldest sons, is spearheading the deal involving the eighth largest cryptocurrency by market value.
On Monday, SRM said in a press release that Sun was tapped as an advisor to the Winter Park, Florida-based firm, alongside a $100 million equity investment from a “private investor.” In the statement, Dominari is listed as the “exclusive placement agent” of an offering involving preferred and common stock that’s valued at $210 million.
The company, which specializes in “toys and souvenirs for the world’s largest theme parks” plans to change its name to Tron, and begin accumulating the Tron (TRX) to maximize shareholder value, as part of its “Treasury Strategy,” SRM added.
Tron was recently changing hands around $0.028, a 3.3% increase over the past day, according to crypto data provider CoinGecko. As of noon Eastern Time, SRM’s stock price had soared over 580% to $9.45, per Yahoo Finance.
SRM plans on instituting a dividend policy once the firm is able to establish a “TRX staking program,” and in a statement Sun highlighted how Tron has positioned his platform as a “leader for cross border settlement” using stablecoins.
The U.S. Securities and Exchange Commission, which accused Tron and his companies of market manipulation and selling unregistered securities in 2023, agreed to pause the high-profile case in February as both sides “explore a potential resolution.”
Sun’s ties have deepened with the Trump family over time. The billionaire attended a private dinner for the president’s meme coin last month, receiving a gold watch as the top eligible VIP holder. Sun has also invested $75 million in World Liberty Financial, a decentralized finance, or DeFi, project backed by members of the Trump family.
Dominari, headquartered below the Trump Organization’s offices in Trump Tower, counts Donald Trump Jr. and Eric Trump as members of its advisory board. Per the Financial Times, Dominari was once the sole parent company of American Bitcoin, a Trump-back Bitcoin miner that has started stockpiling the asset.
Tron did not immediately respond to a request for comment from Decrypt.
Edited by James Rubin
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