Yorkville Acquisition Corp., Trump Media, and Crypto.com have announced a definitive agreement for a business combination to establish Trump Media Group CRO Strategy, a digital asset treasury company focused on acquiring the native cryptocurrency token of the Cronos ecosystem (CRO).

Yorkville Acquisition Corp. is a special purpose acquisition company (SPAC) sponsored by Yorkville Acquisition Sponsor LLC.

At completion, Trump Media Group CRO Strategy will be majority owned by Yorkville, Trump Media and Crypto.com as founding partners.

Expected funding will consist of US$1 billion in CRO (6,313,000,212 CRO, around 19% of CRO’s total market capitalisation at the time of announcement), US$200 million in cash and US$220 million in mandatory exercise warrants.

An additional US$5 billion equity line of credit from an affiliate of Yorkville, YA II PN, Ltd., will also be available.

According to the companies, this would create the first publicly traded CRO treasury company and the largest digital asset treasury company to market capitalisation ratio to date.

YA II PN, Ltd. has entered into a backstop agreement to purchase Class A ordinary shares of Yorkville Acquisition Corp., capped at no more than 9.9% beneficial ownership of the shares validly submitted for redemption by public shareholders and not withdrawn before closing.

Yorkville Acquisition Corp. will apply to list its Class A ordinary shares on Nasdaq under the symbol “MCGA”.

The change of symbol will take effect before the closing of the business combination and will transfer to Trump Media Group CRO Strategy upon completion.

Yorkville Acquisition Corp. will announce separately when the symbol change occurs.

Yorkville, Trump Media and Crypto.com have agreed to a one year initial lock up period on their founding shareholdings, including all warrants, following completion.

This will be followed by a further three year restrictive release schedule.

Trump Media Group CRO Strategy will establish a CRO treasury, with substantially all cash reserves allocated to acquiring CRO.

The company will also operate a validator node on the Cronos network, reinvesting staking rewards to expand holdings and offset operating costs.

“Financial markets are becoming increasingly digital every day, and companies of all sizes and sectors are strategically planning for the future by establishing digital asset treasuries anchored by assets that have created a comprehensive value proposition and are poised for even greater utility,”

said Devin Nunes, Chairman and Chief Executive of Trump Media & Technology Group.

“We continue to be bullish on cryptocurrency, and we are excited to be partnering with a leading global cryptocurrency platform in Crypto.com and one of the most sophisticated investor groups in Yorkville for this strategic initiative.”

“The sheer size and structure of this project will encompass more than the entire current market capitalisation of CRO, with the additional commitments of over US$400 million in cash and a further US$5 billion line of credit facility to acquire additional CRO,”

said Kris Marszalek, Co Founder and Chief Executive of Crypto.com.

“This, combined with share lock ups by each party and the treasury’s validator strategy, make it a unique and compelling offering compared to all other digital asset treasuries.”

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