Nasdaq-listed SRM Entertainment Launches $210M Tron Corporate Treasury, Announces Name Change

Taiwan-headquartered SRM Entertainment (SRM) initiated a significant corporate treasury program for its Tron (TRX) ecosystem and revealed plans to rebrand as Tron Inc. The company announced this development on Tuesday.

Financing the initiative involves a $100 million equity investment secured through a securities purchase agreement with a private investor specifically to fund the Tron treasury strategy.

Financing Structure

To facilitate the treasury, SRM Entertainment will issue 100,000 shares of its Series B convertible preferred stock. According to the terms disclosed:

Each preferred share can be converted into 2,000,000 common shares at a conversion price of $0.50 per common share.
The issuance includes 220 million warrants, exercisable for an additional 220 million common shares at an exercise price of $0.50 per common share, potentially raising another $110 million.

This structure provides for a potential maximum funding of $210 million upon full conversion and exercise.

Strategic Advisory

Tron co-founder and Chief Executive Officer Justin Sun will join SRM Entertainment as an adviser.

Appointed to Pending Rebrand

The timing of this announcement also revealed that the corporation intends to change its name to Tron Inc., effective upon completion of the transaction.

Staking and Dividend Strategy

Tron Inc. outlined future plans to implement a TRX staking program using company assets, subsequently distributing anticipated treasury rewards to holders according to a dividend policy.

“With over 310 million international user accounts and average daily transactions year-to-date exceeding $20 billion, TRON strives to be the protocol of choice for on-chain settlement serving the mass populations worldwide,” stated Tron’s founder.

This strategic focus comes amidst Tether’s continued dominance on the Tron network, recently surpassing Ethereum as the issuer for its USDT stablecoin by surpassing an additional $1 billion in token issuance volume on the TRON blockchain.

Regulatory Developments

The corporate treasury initiative was announced alongside ongoing developments involving US regulators and Tron founder Justin Sun. The development follows a pre-existing lawsuit by the United States Securities and Exchange Commission (SEC), which recently filed an amended complaint stating jurisdiction over Sun due to his extensive travel.

Prior settlement discussions between the SEC and Sun have been reported by media outlets, although the outcome remains pending.