A crypto project founded by billionaire Justin Sun, Tron heads to the public market through unexpected routes. It is a toy and souvenir company that has been linked to some of the world’s largest theme parks, a reverse merger with SRM Entertainment.
The Hong Kong-based blockchain company announced on Monday that it will merge with SRM, a NASDAQ-registered company that offers products to Disney, Universal Studios and SeaWorld. As part of the transaction, SRM will raise $100 million from private investors to purchase the Toron token. The merger package includes preferred stock and warrants, value transactions of up to $210 million.
“SRM Entertainment, Inc. (NASDAQ: SRM) (“SRM” or “Company”) today announced that SRM has concluded a Securities Purchase Agreement (“SPA”) with a $100,000,000 equity investment that SRM uses to launch Tron Token (“TRX”). “Company Advisor” reads the press release.
SRM will also rebrand as Tron Inc., with Sun taking on the advisory role. The market responded quickly. After the announcement, SRM stocks were spiked at 460%, boosting the company’s market capitalization to around $140 million.
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The merger marks a new chapter in the Sun, which was facing civil charges from the Securities and Exchange Commission. In February, court filings revealed that Sun and the SEC were working to resolve the lawsuit. The change in tone followed the wider changes in President Donald Trump’s second term, and saw a rollback of several enforcement actions from the Biden era.
The sun was busy. In January, he increased his token holdings issued by World Liberty Financial, a crypto venture related to the Trump family to $75 million. He later won Trump’s meme tokens and gained recognition as one of its top holders, increasing his stake in Trump-related digital assets to at least $97 million.
SRM’s funding was arranged by Dominari Securities, a boutique investment company whose parent company Dominari Holdings raised eyebrows for its connection with the Trump family. Donald Trump Jr. and Eric Trump joined the advisory committee earlier this year just before Dominali’s stocks left.
“Donald Trump Jr. and Eric Trump joined the Dominali Holdings advisory committee earlier this year shortly before the company’s stock price rose,” CNBC reported.
SRM says it will bet on Tron tokens, pay dividends and build shareholder value through exposure to crypto assets, similar to the strategies Michael Saylor’s microstrategy uses with Bitcoin.
Tron has established itself as a competitor for Solana, pledging fast trading and low fees, and focusing on moving stable digital assets throughout the network.
Originally from China, Sun received his history degree from Peking University in 2011. He was recently appointed as the World Trade Organization representative by Grenada and is known for his headline grabbing stunts, including paying $4.6 million for lunch with Warren Buffett in 2019.
He also bought three digital zone NFTs for $2 million and donated them to the Apenft Foundation before covering Sun in October 2021.
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