Tron Inc. (formerly SRM Entertainment) filed an application with the SEC to issue shares, debt instruments, and other securities totaling up to $1 billion. The company plans to use these funds to expand its reserve in TRX tokens.
Following the news, Tron Inc.’s stock price rose by 13%, reaching $10.84. The firm’s market capitalization exceeded $200 million. After a reverse merger with Justin Sun’s project and rebranding, the figure soared by 1300%.
According to CoinGecko, the price of TRX has increased by 2% over the past day. At the time of writing, the token is trading at $0.32.
In June, the firm raised $100 million. At the time of writing, it manages over 365 million TRX, making Tron Inc. the largest holder of the coin. The company intends to continue purchasing tokens, mirroring Michael Saylor’s Strategy.
Before rebranding, SRM Entertainment was engaged in selling toys and souvenirs. However, this business was unprofitable, prompting the firm to focus on cryptocurrency.
Vincent Liu, Investment Director at Kronos Research, described the company’s strategy as “aggressive liquidity engineering,” aimed at integrating traditional finance into the Tron ecosystem.
“Tying a public company’s balance sheet to the Tron blockchain creates a powerful growth driver, combining a price reflection mechanism and a first-mover competitive advantage,” he noted in a comment to Decrypt.
However, the expert warned that the low market depth of TRX makes the firm’s plans more volatile than, for instance, those involving Bitcoin.
Trading of Tron Inc. shares began on the Nasdaq exchange on July 24.