Trump Media & Technology Group, Yorkville Acquisition and Crypto.com have entered an agreement for a business combination to establish a digital-asset treasury company.
Trump Media shares jumped 4% on the news.
The companies said Tuesday the new company will be called Trump Media Group CRO Strategy. It will be focused on acquiring CRO, the native cryptocurrency token of the Cronos ecosystem.
At the close of the transaction, the three companies will have majority ownership of the new entity.
Expected funding for the digital-asset treasury will consist of $1 billion in CRO, $200 million in cash and $220 million cash-in mandatory exercise warrants, with an additional $5 billion equity line of credit from an affiliate of Yorkville.
"Financial markets are becoming increasingly digital every day," Trump Media Chief Executive Devin Nunes said. "Companies of all sizes and sectors are strategically planning for the future by establishing digital asset treasuries anchored by assets that have created a comprehensive value proposition and are poised for even greater utility."
Yorkville Acquisition, a special-purpose acquisition company, will apply to have its Class A ordinary shares trade on Nasdaq under the symbol MCGA. The new symbol will transfer to Trump Media Group CRO Strategy upon the closing of the business combination, the companies said.
Yorkville, Trump Media and Crypto.com have agreed to a mandatory one-year initial lock-up period on their founding shareholdings, including all warrants granted, after the close of the transaction. The initial lock-up period will be followed by an additional three-year restrictive release schedule, the companies said.
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