Trump Media abandons the plan to issue coin, plans to invest $100 million to acquire and integrate Cronos(CRO) for platform rewards.

Trump Media & Technology Group (TMTG), the parent company of the social platform Truth Social, has made significant adjustments to its digital asset strategy. The company has decided to abandon plans to issue its own native Token and instead collaborate with a crypto exchange to integrate its Cronos (CRO) Token into its platform rewards system. This shift is part of a larger multi-hundred million dollar crypto landscape aimed at balancing ambitions to enter the digital asset space with regulatory caution.

Core Cooperation: Acquisition of CRO Token in a $105 Million Transaction

According to the announcement, TMTG has reached an agreement worth $105 million with a CEX to acquire 684.4 million CRO Tokens. The transaction is conducted in a combination of cash and stock, with a purchase price of approximately $0.153 per Token. The agreement is part of a grand joint strategy between both parties aimed at building a $6.4 billion CRO reserve.

This move is at the heart of the Truth Social rewards program expansion. Under this new system, users can earn "gems" through activities on the Truth Social and Truth+ streaming platforms, which can now be exchanged for CRO tokens through the digital wallet infrastructure of the CEX. This plan replaces the previous issuance of the proprietary TMTG token.

The company's move aims to leverage a mature platform and blockchain provider to avoid the regulatory and operational risks associated with the issuance and maintenance of its own Crypto Assets. Since the reserve plan was first announced in August, the price of CRO Token has risen by over 66%.

The Grand Crypto Landscape and Political Influence of TMTG

This strategic shift of TMTG is part of its broader crypto landscape:

Bitcoin Reserves: TMTG has positioned itself as one of the largest corporate Bitcoin holders, with 18,430 Bitcoins valued at approximately $2.1 billion, ranking sixth globally, ahead of Tesla and Coinbase.

ETF Application: TMTG has submitted an application to the U.S. Securities and Exchange Commission (SEC) to launch a Truth Social Bitcoin and Ethereum ETF, with the cooperative CEX acting as the custodian. The application is currently under review by the SEC.

Fintech Department: The company has established the Truth.Fi Fintech Department, which is specifically responsible for Crypto Assets investment.

The article points out that Donald Trump's expanding $1.2 billion encryption empire has garnered support from the Crypto Assets industry (receiving over $26 million in campaign donations) while also attracting political criticism, with critics warning that the profits from his family-related businesses in stablecoins, meme coins, and mining projects could pose a conflict of interest.

Conclusion

The collaboration between TMTG and CEX marks a significant and pragmatic shift in its digital asset strategy. By leveraging established encryption infrastructure, the company aims to expand its digital footprint while avoiding complex regulatory risks. This initiative, combined with its substantial Bitcoin holdings and political influence, positions TMTG at the center of a rapidly evolving and politically charged digital financial landscape.