SRM Entertainment Rebrands as Tron Inc, Secures $210 Million Treasury

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. Justin Sun, the founder of Tron, will join the company as an adviser, bringing his extensive expertise in blockchain technology to the table.

As part of the agreement, SRM Entertainment will issue 100,000 shares of its Series B convertible preferred stock. This stock can be converted into 200 million shares of common stock at a conversion price of $0.50 per share, along with 220 million warrants to acquire 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. Eric Trump is expected to take a role at the newly rebranded firm.

Tron Inc. plans to implement a dividend policy following the launch of a TRX staking program using company assets. Justin Sun highlighted the increasing real-world usage of blockchains and stablecoins, stating that Tron aims to be 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.

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 claimed jurisdiction due to his extensive travel throughout the country. In late February, the SEC and Sun requested a federal court to pause the regulator’s case against Sun 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.

SRM Entertainment's rebranding to Tron Inc. and its commitment to building a $210 million TRX treasury represent a significant strategic shift. With Justin Sun as an adviser, Tron Inc. is well-positioned to leverage the potential of blockchain technology and cryptocurrency within the entertainment industry. This move not only reflects the company's confidence in the future of blockchain but also its commitment to innovation and strategic growth. The involvement of Justin Sun ensures that the company has the necessary expertise and guidance to navigate the complexities of the blockchain landscape, potentially opening up new opportunities for partnerships, collaborations, and innovative projects within the entertainment industry.