SRM Entertainment Rebrands as Tron Inc with $210 Million Treasury Plan

SRM Entertainment, a company listed on the Nasdaq, has announced its intention to establish a Tron corporate treasury valued at up to $210 million and to rebrand itself as Tron Inc. This strategic move was revealed on Monday, marking a significant shift in the company's direction.

The company has entered into a securities purchase agreement with a private investor, securing a $100 million equity investment. This funding will be used to support SRM's Tron (TRX) treasury strategy. Additionally, Tron founder Justin Sun will join the company as an adviser, bringing his expertise and influence to the new venture.

As part of the agreement, SRM Entertainment will issue 100,000 shares of its Series B convertible preferred stock. These shares can be converted into 200 million shares of common stock at a conversion price of $0.50 per share. Furthermore, 220 million warrants will be issued, allowing for the acquisition of up to 220 million shares of common stock at an exercise price of $0.50 per share.

The strategic investment, valued at $210 million upon full exercise of the warrants, will enable SRM to build a substantial TRON Treasury Strategy. The deal was structured by Dominari Securities, a bank with reported ties to the family of former US President Donald Trump. It is expected that Eric Trump, the son of Donald Trump, will take on a role at the newly rebranded firm.

Tron Inc. has outlined plans to implement a dividend policy following the launch of a TRX staking program using company assets. Justin Sun, the founder of Tron, highlighted the increasing real-world usage of blockchains and stablecoins. He noted that Tron has over 310 million international user accounts and that average daily transactions year-to-date exceed $20 billion. Sun emphasized Tron's goal to become the protocol of choice for onchain settlement, serving mass populations worldwide.

This announcement comes after data from mid-May showed that stablecoin issuer Tether minted another $1 billion in USDT tokens on the Tron network, surpassing the authorized USDT supply on Ethereum.

The regulatory environment between the US Securities and Exchange Commission and Sun has seen a thaw. In an amended suit against Sun, the SEC claimed jurisdiction over Sun's activities due to his extensive travel throughout the country. In late February, the SEC and Sun requested a pause in the regulator’s case to facilitate settlement talks. In April, Sun revealed that he owns the wallet that purchased the largest share of Trump’s official memecoin, qualifying him for a dinner and reception with the US president.