Trump Media and Crypto.com Cook Up a $6B CRO Treasury Play… (Let The Party Begin)

Hold up, let 'em cook… 

The Don is always a hot commodity when it comes to the news cycle… and today is no exception. Case in point: Trump already has a social network, a SPAC, and an Oval Office. But now, he’s doing his own Michael Saylor roleplay. 

(Source: Giphy) 

In short, Trump Media & Technology Group and Crypto.com announced Tuesday they’re forming a joint venture called Trump Media Group CRO Strategy Inc…. a publicly traded vehicle that will raise billions just to hoard Crypto.com’s native token, Cronos (CRO). Basically, think of this as MicroStrategy with more red hats and fewer bean counters to account for. The company will go public by merging with Yorkville Acquisition Corp (a SPAC, of course). But the best part is the new ticker: MCGA. Yes… as in “Make Crypto Great Again.” Translation: This man doesn't miss an opportunity to squeeze the branding out of everything. 

(Source: Yahoo Finance) 

As for the numbers… Well, the math looks insane, which is exactly the point. For funding, it’ll be $1B in CRO, $200M in cash, $220M in warrants, and a $5B equity line from a Yorkville affiliate. Crypto.com is front-loading 684M CRO ($105M) to Trump Media in exchange for shares and $50M in cash, but all three of these big swingin’ players will be locked up for a year. Meaning, no one’s dumping their bags until at least 2026.

Side note: If you’ve lived in the cesspool that is, memecoins, you’d know how “legit” this sounds. Which is precisely why CRO token jumped +22% to $0.19 and Trump Media mooned +5%. Meanwhile, Yorkville’s stock dipped -2%, presumably because their investors hate money. 

(Source: Bloomberg) 

With all of that said, is Cronos the “future of money”? No. But that’s not the point. The goal here is about building a political-financial feedback loop. For instance, Trump gets to champion crypto while owning a balance sheet stuffed with tokens. Crypto.com gets legitimacy and a headline ticker. And Yorkville has a reason to exist. If it works, MCGA becomes a permanent bid under CRO the same way MicroStrategy is for Bitcoin. If it doesn’t, well… SPACs aren’t exactly known for happy endings.

However, keep in mind… this isn’t a shot in the dark either. Trump and Crypto.com CEO Kris Marszalek are the epitome of the “epic handshake” meme. For example, Kris Marszalek was among the first exchange bosses to show up at Mar-a-Lago after Trump’s electoral win. The exchange also wrote a $1M check for Trump’s inaugural committee. Now the relationship has matured into something more… ETFs, a “Truth.Fi” brand, and this new treasury play.

(Source: Imgflip) 

Which brings me to the three BIGLY benefits this thing does for Donnie Politics. #1. This gives The Don crypto credibility with a solid foundational base. #2. A new ticker that literally says “MCGA” and keeps the branding on fleek for our President. And #3. Leverage against regulators who are already squirming about a politicized Fed and SEC. Translation: regulation can go kick rocks. 

So yeah… let the party begin. But what does this mean for investors? Well, at face value, this is an $18-billion media company stapled to a volatile mid-cap crypto token. But if you’re thinking about MCGA stock the way you’d think about earnings or free cash flow, you’re missing the game. This isn’t a business model. Who cares about those? This is a bet that Trump’s political brand is now a liquidity engine… one that can turn CRO into a campaign slogan, a stock, and a cult asset all at once. Bigly. 

(Source: Giphy)

Now of course, this is just the start. I’m sure there will be a swath of more details that come out about this. So in the meantime, keep your head on the swivel and place your bets accordingly, friends. Until next time… 

At the time of publishing, Stocks.News does not hold positions in companies mentioned in the article.