Tron Inc. seeks $1B to grow TRX holdings as stock rallies

Tron Inc., the Nasdaq-listed company that previously traded as a penny stock under SRM Entertainment, is seeking approval from US regulators to raise $1 billion to expand its Tron () holdings, following its reverse merger with Justin Sun’s blockchain project.

According to its with the US Securities and Exchange Commission, Tron Inc. plans to raise the funds through a mix of common stock, preferred stock, debt securities, warrants and rights — or any combination thereof.

The proceeds will go toward expanding the company’s TRX treasury, which already holds over 365 million TRX tokens following its reverse merger last month.

As , Tron Inc. initially aimed to build a TRX reserve worth up to $210 million and had secured $100 million in equity investments to support those purchases.

In its SEC filing, Tron Inc. outlined a treasury reserve strategy consisting of cash, short-term equivalents, and TRX tokens.

“We view our TRX tokens holdings as long-term holdings and expect to continue to accumulate TRX tokens,” the filing reads.

While TRX fell 5% on Monday, shares of Tron Inc. surged more than 23% on news of its funding application, trading above $11.80. Formerly a penny stock under the name SRM Entertainment, the company has rallied sharply since its reverse merger and rebranding. According to Yahoo Finance, the stock is up over 1,300% since June 10.

The company’s market capitalization has swelled to over $200 million.

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Tron Inc. is among many companies . Most of these strategies center on Bitcoin (), inspired by Strategy Executive Chairman Michael Saylor’s playbook.

According to industry data, public companies, including Strategy and various Bitcoin miners, hold 923,327 BTC on their balance sheets as of July 28.

On Monday, Japan’s with a purchase of 780 BTC, bringing its total holdings to 17,132 BTC.

Last week, the raised $135 million to fund one of the country’s biggest Bitcoin treasury purchases. 

In Canada, the plans to relist on the Toronto Stock Exchange after raising $92 million to acquire BTC. 

Crypto treasury strategies are also expanding to other assets. As Cointelegraph reported, former executives of Coral Capital Holdings have to establish a treasury focused on Binance’s BNB () token.

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