TLDR
- Tron, founded by Justin Sun, will go public in the U.S. through a reverse merger with Nasdaq-listed toy company SRM Entertainment
- SRM will rename itself “Tron Inc” and receive a $100 million investment to purchase TRX tokens for its treasury
- Justin Sun becomes an adviser to the newly formed company, with SRM shares jumping over 500% on the announcement
- The deal was organized by Dominari Securities, whose board includes Donald Trump Jr. and Eric Trump as advisers
- Sun faces ongoing SEC fraud charges but the lawsuit has been paused under the Trump administration
Justin Sun’s crypto empire is heading to public markets through an unexpected partnership. The Tron founder has struck a deal with SRM Entertainment, a small Nasdaq-listed toy company based in Winter Park, Florida.
BREAKING: TRON TO GO PUBLIC VIA NASDAQ REVERSE MERGER
PARTNERS WITH ERIC TRUMP TO FORM MICROSTRATEGY-STYLE COMPANY.
Source: @FT pic.twitter.com/SuaoE5r6iv
— Mario Nawfal’s Roundtable (@RoundtableSpace) June 16, 2025
SRM Entertainment announced Monday it will change its name to Tron Inc following the agreement. The company currently designs toys and souvenirs for theme parks, including Smurfs water bottles and stuffed animals like “Hanna Hedgehog” and “Gideon Gator.”
The deal involves a $100 million investment that SRM will use to purchase TRX tokens. This creates what the company calls a “treasury strategy,” where publicly traded firms add cryptocurrencies to their balance sheets.
SRM shares responded dramatically to the news. The stock surged more than 500% on Monday, closing at $9.19 after opening Friday at $1.45.
Investment Structure and Terms
Under the agreement terms, SRM will issue 100,000 shares of Series B Convertible Preferred Stock. These can convert into 200 million common shares at 50 cents each.
The company will also issue 220 million warrants. These allow SRM to acquire up to 220 million additional common shares at the same 50-cent exercise price.
If all warrants are exercised, the total investment value reaches $210 million. SRM plans to use this capital to build a substantial Tron token treasury.
The company also intends to implement a dividend policy as part of its new crypto strategy. Chief Executive Rich Miller called Tron “the industry leader for cross border settlement in U.S. dollar stablecoin.”
Political Connections
Dominari Securities organized the SRM deal. This New York investment bank operates from office space in Trump Tower.
In February, Donald Trump Jr. and Eric Trump joined Dominari Holdings’ board as advisers. The company’s stock rallied following that announcement.
Sun has cultivated close ties with the Trump family since the November election. He invested $75 million in World Liberty Financial, the crypto venture backed by the Trump family.
Sun also attended a gala dinner with President Trump last month. The event was for the largest holders of Trump’s memecoin, where Sun accumulated over $20 million worth of tokens.
Legal Challenges
Sun faces ongoing legal issues with U.S. regulators. The Securities and Exchange Commission sued him in 2023, accusing him of manipulating the TRX token market.
The SEC filed fraud charges against Sun and three of his companies. However, in February, the agency asked a court to pause the lawsuit.
This pause is part of a broader rollback of crypto enforcement under the Trump administration. Sun has called the SEC’s charges meritless.
The Chinese-born entrepreneur founded the Tron blockchain network. He has built close business relationships with Trump-linked ventures this year.
HTX, a crypto exchange that Sun effectively leads, became the first platform to list World Liberty’s USD1 stablecoin. This token is pegged to the U.S. dollar and represents another connection between Sun’s business empire and Trump’s crypto interests.
The reverse merger represents Sun’s latest move to establish his digital currency operations in the United States. SRM will develop its Tron treasury strategy while leveraging what Miller described as “the global adoption of blockchain and digital innovation.”
