Tron Inc. seeks $1B to boost TRX holdings amid 1,300% stock rally

Tron Inc., the rebranded entity formerly known as penny stock SRM Entertainment, is seeking regulatory approval to raise $1 billion to expand its TRX holdings.

The Nasdaq-listed company filed a Form S-3 with the U.S. Securities and Exchange Commission (SEC) on July 28, outlining plans to raise capital through common stock, preferred stock, debt securities, warrants, or a combination of these instruments.

The move comes as Tron Inc.’s stock skyrockets—up 1,300% since its June 10 reverse merger with Justin Sun’s blockchain venture. The company already holds over 365 million TRX tokens, worth approximately $109 million at current prices, and intends to aggressively accumulate more.

“We view our TRX holdings as long-term investments and expect to continue to accumulate TRX tokens,” the company stated in its SEC filing.

TRX holdings fuel market optimism despite token volatility

While Tron Inc.’s shares surged 23% on news of the $1 billion fundraising plan, the TRX token itself dipped 5% on Monday, trading at $0.2981. Analysts attribute the divergence to investor confidence in the company’s treasury strategy, which mirrors corporate Bitcoin accumulation plays like MicroStrategy’s.

“Tron Inc.’s focus on TRX holdings signals a strategic bet on the token’s utility and long-term value,” said Mark Johnson, a crypto analyst at Chainalysis. “But the market will watch closely to see if demand keeps pace with supply.”

The firm’s market capitalization has ballooned to over $200 million, a staggering leap from its penny-stock origins.

Crypto treasury strategies expand beyond Bitcoin

Tron Inc.’s push to grow its TRX holdings reflects a broader trend of public companies diversifying crypto treasuries. While Bitcoin remains the dominant asset for corporate balance sheets—with firms like MicroStrategy holding 923,327 BTC—altcoins are gaining traction.

• Metaplanet (Japan): Added 780 BTC this week, totaling 17,132 BTC.

• Satsuma Technologies (UK): Raised $135 million for Bitcoin purchases.

• Bitcoin Treasury Corporation (Canada): Secured $92 million to relist on the TSX.

“The appetite for TRX holdings and other altcoins shows corporations are hedging beyond Bitcoin,” noted Clara Wu, head of research at CryptoCompare.

Risks and regulatory scrutiny loom

The SEC’s review of Tron Inc.’s filing will be a critical test for crypto-linked equity offerings. The agency has historically scrutinized mergers involving shell companies, and the firm’s ties to Justin Sun—who settled SEC charges in 2023—could draw additional attention.

Meanwhile, TRX’s price volatility raises questions about the sustainability of Tron Inc.’s treasury strategy. “Concentrating TRX holdings carries unique risks, especially with regulatory uncertainty,” warned SEC Commissioner Hester Peirce in a recent interview.

Key points:

• Tron Inc. seeks $1 billion to expand its TRX holdings, per an SEC filing.

• Its stock has rallied 1,300% since merging with Justin Sun’s blockchain project.

• Corporate crypto treasuries are diversifying beyond Bitcoin, with TRX as a case study.