Tron to Go Public in U.S. via Reverse Merger with SRM Entertainment

Tron, a prominent digital asset platform, has announced its plans to go public in the U.S. through a reverse merger with SRM Entertainment, a Nasdaq-listed company. This strategic move comes after the Securities and Exchange Commission (SEC) paused its investigations into Justin Sun, the CEO and founder of Tron, who was accused of selling unregistered securities and market manipulation. The new entity, Tron Inc., will adopt a strategy similar to MicroStrategy, holding and using Tron tokens (TRX) as its primary asset.

The reverse merger will not involve a traditional initial public offering (IPO). Instead, Tron Inc. will be established with an initial investment of $210 million worth of TRX from Justin Sun. This investment underscores the significant financial backing and strategic direction of the new venture. The TRX token, currently trading at $0.28, has shown a 1.45% increase today, reflecting market optimism surrounding the announcement.

Dominari Securities, a New York-based boutique investment bank with ties to Eric Trump and Donald Trump Jr., facilitated the deal. Eric Trump is expected to join the company in an executive capacity, adding to the strategic and political influence of the new venture. Dominari Securities stock had previously rallied by 580% earlier this year after Eric Trump and Donald Trump Jr. joined the company's advisory board in executive roles.

SRM Entertainment, valued at $25 million, is significantly below the investment deal size of $210 million. The company has secured $5 million in private investment in public equity (PIPE) financing as part of the agreement and sold 5,000 Series A Convertible Preferred Stock shares convertible into 10 million shares at $0.5 per share. The partnership will also include issuing 100,000 shares of Series B Convertible Preferred stock, convertible into 200 million common shares at $0.50 per share, along with 220 million warrants exercisable at the same price, totaling the investment to $210 million if all warrants are exercised.

Tron has been widely adopted for its large stablecoin market and cheap and fast transactions. Justin Sun has been appointed as SRM Entertainment’s advisor. SRM Entertainment revealed a $100 million equity investment through a Securities Purchase Agreement with a private advisor. Using the funds, SRM plans to acquire and stake TRX tokens. Sun emphasized that stablecoins and blockchain are revolutionizing global payments, enabling faster, cheaper, and more transparent transactions. He added that the Tron network strives to be the protocol of choice for on-chain settlement, serving the largest population worldwide. The company has over 310 million international user accounts and average daily transactions that exceed $20 billion year-to-date.

Tron’s CEO recently received a pause from the SEC investigations, which charged him with trading unregistered securities and alleged market manipulation. He has forged connections with influential Republican figures, including President Donald Trump and his family. He joined the top 220 $TRUMP meme coin holders at a Trump National Golf Club banquet. Sun had also invested $75 million into World Liberty Financial, the Trump family-backed crypto project where Trump earned $57 million personally.

The company has been given a 180-day extension to meet the minimum bid price rule of $1.00 per share. The deadline for the requirement will be October 20, 2025. Miller, CEO of SRM Entertainment, highlighted his confidence in the company to meet its obligations and expand its business through new product lines and distribution channels. Miller noted the company’s shift towards blockchain innovation and revealed their excitement about investing in the future of the world’s next-generation financial infrastructure.

Ask Aime: Should I invest in Tron's reverse merger with SRM Entertainment after the SEC pauses its investigation into Justin Sun?