Tron (TRX), spearheaded by founder Justin Sun, is preparing to acquire SRM Entertainment via a reverse merger, which will rebrand the company as Tron Inc. and center its treasury strategy on TRX, the blockchain’s native currency. The deal includes a $100-million investment, potentially funded by warrant exercises.

The TRX Treasury Test

The move puts TRX in a competitive niche with established corporate treasury assets. While companies globally are adopting Bitcoin and other cryptocurrencies for reserves, Tron’s strategy differs significantly, proposing the company’s *own* token, rather than a more decentralized asset like Bitcoin.

Justin d’Anethan, head of sales at Liquifi, highlighted the inherent risks: “[Michael] Saylor [MicroStrategy founder] has… experience with structured products… Many newer vehicles [like Tron Inc. stock tied to TRX] do not,” implying a higher risk profile than Bitcoin treasuries.

Analysts caution that holding a company’s own token creates a potentially dangerous feedback loop: “If confidence in Tron Inc falters, TRX may drop, which then tanks Tron Inc’s perceived value,” noted Bitget Wallet’s Jamie Elkaleh.

Volume and Volatility Concerns

TRX, despite being one of the top market-cap cryptocurrencies ($26.2B as of June 17), shows significant differences from Bitcoin as an asset for treasuries. Its exchange volume ($1.75B daily vs Bitcoin’s $34.3B) and liquidity are substantially lower, presenting challenges for its use as a stable corporate asset.

Its history includes navigating multiple “ghost chain” rumors but maintaining a significant role in stablecoin flows (second-largest network for USDT, Tron’s Tether).

The Trump Connection

The deal involves a unique element: reported links to TRON founder Justin Sun and Eric Trump. After initial reports linking Eric Trump to the placement agent, Dominari Securities, he denied “public involvement” with Tron Inc.

Justin Sun’s connections to the Trump family, including winning dinner with former President Trump, further attracted attention to the deal, raising questions about scrutiny on politically connected tech ventures. The link is primarily through Sun’s funding and advisory role in a separate, related memecoin project issued on the Tron network.

Reverse Merger vs. IPO

The proposed listing is framed as a reverse merger transaction, a method where private companies rapidly obtain public listings by acquiring existing public entities. This contrasts with Circle’s more conventional path to an IPO, valuing its USDC stablecoin highly.

While not an endorsement, analyst Yuriy Brisov notes that Circle’s method is often preferred for transparency. The Tron deal also brings the SEC’s ongoing investigation into TRX/BTT token sales back into play. If the token is deemed a security, Tron Inc. could face compliance hurdles.