SRM Entertainment Locks $100 Million in TRON for 10% Yield

SRM Entertainment, a Florida-based company, has made a significant move into the cryptocurrency space by completing a $100 million TRON staking push. On June 30, the company locked up 365 million TRON (TRX) tokens, valued at approximately $100 million, into JustLend, a decentralized lending protocol on the TRON blockchain. This strategic move aims to generate up to 10% annual yield by combining standard staking rewards with energy renting, a unique feature of TRON’s network economics.

The decision to invest in TRON aligns with SRM’s earlier allocation of $100 million to TRX, positioning the company as the largest publicly traded holder of the cryptocurrency. This shift is part of a broader strategy that includes appointing TRON founder Justin Sun as a strategic advisor and naming Weike Sun as the new board chair earlier this month. The company’s pivot towards TRON is driven by the blockchain’s growing dominance in stablecoin settlements and high-yield decentralized finance.

TRON’s network hosts over $80 billion in dollar-pegged stablecoins, primarily USDT, making it a preferred choice for cross-border transactions in emerging markets. The network’s low-cost settlement layer and energy rental mechanics are particularly attractive for high-frequency transactions and yield-maximizing corporate treasuries. For SRM, this represents a deliberate shift towards an asset with real-world utility, moving away from its traditional focus on selling Disney-themed trinkets.

Rich Miller, Chief Executive Officer of SRM, highlighted the strategic benefits of this move. “The TRON treasury strategy continues to unlock new value for our shareholders. We expect SRM to benefit as blockchain technology gains wider adoption globally. TRON is an industry leader for cross-border settlement in US dollar stablecoin, which is great for our shareholders,” he stated.

By deploying its 365 million TRX through JustLend, SRM taps into two revenue streams: standard staking rewards, which are around 5 to 6% annually, and energy renting. This hybrid approach pushes potential yields toward 10%, significantly higher than traditional corporate bond returns. For context, Apple’s treasury, which holds over $160 billion in cash, cash equivalents, and marketable securities, has been generating an average yield of around 4.3 to 4.7% on those reserves.

However, the higher yield comes with higher risk. Unlike Apple’s dollar-backed instruments, TRX remains a volatile crypto asset with heavy reliance on Justin Sun’s ecosystem and unclear regulatory standing in the U.S. TRON’s legal quagmire and Sun’s controversial history mean SRM’s fate is now tied to a polarizing figure in the crypto world. For shareholders, the promise of 10% yields and a Nasdaq-listed blockchain play may be enticing. For skeptics, it is a high-wire act with no safety net.