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

SRM Entertainment, a Nasdaq-listed company, has announced a significant strategic move to launch a Tron corporate treasury valued at up to $210 million and rebrand itself as Tron Inc. This decision was revealed on Monday, marking a pivotal shift in the company's direction. The initiative involves a securities purchase agreement with a private investor, securing a $100 million equity investment to support the Tron (TRX) treasury strategy. As part of this agreement, SRM Entertainment will issue 100,000 shares of its Series B convertible preferred stock, which can be converted into 200 million shares of common stock at a conversion price of $0.50 per share. Additionally, 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, is designed 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 anticipated that Eric Trump, the son of the , will take on a role at the newly rebranded firm.

Tron Inc. has outlined plans to implement a dividend policy following the establishment 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 average daily transactions exceeding $20 billion year-to-date, positioning it as a leading protocol for onchain settlement globally. This announcement comes after data from mid-May indicated that Tether minted an additional $1 billion in USDT tokens on the Tron network, surpassing the authorized USDT supply on Ethereum.

This development occurs amidst a regulatory thaw between the US Securities and Exchange Commission and Justin Sun. In an amended suit against Sun, the SEC asserted jurisdiction based on 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 his ownership of the wallet that purchased the largest share of Trump’s official memecoin, qualifying him for a dinner and reception with the US president.

The rebranding and treasury strategy reflect a broader trend in the entertainment industry, where companies are increasingly exploring blockchain technology to enhance operations, security, and revenue streams. The appointment of Justin Sun as an adviser is a strategic move, leveraging his expertise to guide Tron Inc. through this transition. The company's commitment to a $210 million TRX treasury strategy underscores its confidence in the potential of cryptocurrency and blockchain technology to drive future growth and success.