-
Tron Inc. registers up to $1B in securities to fund TRX accumulation
-
Toy business no longer generates positive cash flow
-
Governance concerns tied to Justin Sun’s father and Tron-linked executives
-
Strategy resembles equity-funded crypto treasury models used by Strategy
Corporate Pivot to Tron Ecosystem
Tron Inc., formerly a toy merchandiser known as SRM Entertainment, has filed to raise up to $1 billion in securities to fuel its transformation into a crypto treasury vehicle focused on TRX, the native token of the Tron blockchain. The company plans to issue stock, debt, and other instruments to fund token purchases and create additional income-generating opportunities tied to TRX.
The move mirrors the equity-backed treasury playbook pioneered by companies like Strategy (formerly MicroStrategy), but applies it to a less liquid asset with greater volatility.
Governance Risks and Strategic Ties to Tron
Tron Inc.’s board is chaired by Weike Sun, father of Tron founder Justin Sun, raising concerns about governance and potential conflicts of interest. The firm’s board includes several individuals affiliated with the Tron DAO and Tronscan, and the reverse merger that brought Tron Inc. public was funded by $100 million in TRX from a Hong Kong trust tied to its leadership.
Tron Inc. acknowledges that TRX’s lower liquidity could complicate future fundraising. Still, it hopes the move creates long-term value through price reflexivity and early-mover advantage in the altcoin treasury trend.
