Trump Media and Crypto.com are advancing their plans to establish a publicly traded treasury for Cronos (CRO), with a market valuation projected at over $6 billion. This partnership, in conjunction with Yorkville Acquisition Corp., aims to finalize the deal in the first quarter of 2026, at which point the entity will be renamed Trump Media Group CRO Strategy, Inc.
The treasury has encountered some turbulence, as the value of CRO has plummeted by more than 8% in a single day, bringing its total decrease to approximately 90% since its peak in 2021. This decline raises questions about the viability of the treasury”s initial holdings, which were valued at around $1 billion when first announced, but are now estimated to be worth about $636 million due to a 30% drop in the token”s price over the past month.
The business combination, which was made public on Monday, involves a confidential filing of S-4 with the SEC by Yorkville Acquisition Corp., trading under the ticker MCGA on Nasdaq. The firm has also appointed two pivotal executives: Steve Gutterman, who will serve as CEO, and Sim Salzman, taking on the role of CFO, both starting with the anticipated closure of the business combination in Q1 2026.
Gutterman expressed confidence in the venture, stating, “MCGA is uniquely positioned to scale and create shareholder value. No one else has the partners or the positioning that we do.” He emphasized their excitement about collaborating with teams from Yorkville, Crypto.com, and Trump Media to rejuvenate the CRO asset.
The treasury is set to start with a significant asset base, including 6.3 billion CRO tokens, $200 million in cash, $220 million in warrants, and a substantial equity line of credit estimated at $5 billion. Notably, the current market capitalization of CRO stands at $3.7 billion, while its fully diluted valuation, accounting for locked tokens, exceeds $9.7 billion.
In light of CRO”s recent downturn, the treasury”s strategy appears predicated on the expectation that the token”s price will appreciate in the future, potentially bolstered by the treasury”s own asset acquisitions. Furthermore, the treasury plans to establish a Cronos validator node, with projections to yield around 6% APY through staking rewards.
The founding partners have highlighted the unique potential of CRO, viewing it as integral to an expanding blockchain ecosystem, facilitating utility through transactions, fees, governance, and yield generation via staking.
Previously, in July, Trump Media made headlines by purchasing approximately $2 billion in Bitcoin and related equities. The firm also announced intentions to acquire $105 million in CRO for a rewards program across its platforms, including Truth Social and Truth+.
As of Monday, shares of Trump Media (DJT) have decreased by about 6%, trading at $10.88, while the stock has seen a staggering 49% decline over the past six months. Meanwhile, shares of MCGA have remained stable, although the treasury asset, CRO, has witnessed an 8.3% drop within the last 24 hours, recently trading at nearly $0.10, which is approximately 90% lower than its all-time high of $0.96 reached in 2021.
