TRON to go public via reverse merger after U.S. pauses probes into founder Justin Sun

Tron, the crypto project founded by billionaire Justin Sun, is heading to the public markets through an unexpected route: a reverse merger with SRM Entertainment, a toy and souvenir company with ties to some of the world’s biggest theme parks.

The Hong Kong-based blockchain company announced Monday that it will merge with SRM, a Nasdaq-listed firm that supplies merchandise to Disney, Universal Studios, and SeaWorld. As part of the deal, SRM will raise $100 million from a private investor to purchase TRON tokens. The merger package includes preferred shares and warrants, valuing the deal at up to $210 million.

“SRM Entertainment, Inc. (Nasdaq: SRM) (“SRM” or the “Company”), announced today that it has entered into a Securities Purchase Agreement (“SPA”) with a private investor for a $100,000,000 equity investment that will be used by SRM to initiate a TRON Token (“TRX”) Treasury Strategy. Along with the strategic investment – Justin Sun, founder of TRON blockchain, has been named as an advisor to the Company,” the press release reads.

SRM also plans to rebrand as Tron Inc., and Sun will take on an advisory role. The market responded swiftly—SRM shares spiked 460% following the announcement, pushing the company’s market cap to roughly $140 million.

Crypto Group Tron Goes Public, SEC Backs Off: Justin Sun’s Comeback Is On

The merger marks a new chapter for Sun, who had been facing civil charges from the U.S. Securities and Exchange Commission. In February, a court filing revealed that Sun and the SEC were working toward resolving the case. The shift in tone follows broader changes under President Donald Trump’s second term, which has seen the rollback of several enforcement actions from the Biden era.

Sun has stayed busy. In January, he increased his holdings in tokens issued by World Liberty Financial—a crypto venture connected to the Trump family—to $75 million. He later acquired Trump’s meme token, earning recognition as one of its top holders and boosting his total stake in Trump-linked digital assets to at least $97 million.

SRM’s financing was arranged by Dominari Securities, a boutique investment firm whose parent company, Dominari Holdings, has raised eyebrows for its ties to the Trump family. Both Donald Trump Jr. and Eric Trump joined its advisory board earlier this year, shortly before Dominari’s stock took off.

“Donald Trump Jr. and Eric Trump joined Dominari Holdings’ advisory board earlier this year, shortly before the firm’s share price surged,” CNBC reported.

SRM says it will stake the TRON tokens, pay out dividends, and build shareholder value through exposure to crypto assets, similar to the strategy used by Michael Saylor’s MicroStrategy with bitcoin.

TRON positions itself as a competitor to Solana, promising fast transactions and low fees, with a focus on moving stablecoins and other digital assets across its network.

Sun, originally from China, earned a history degree from Peking University in 2011. He was recently appointed by Grenada as its representative to the World Trade Organization and has been known for his headline-grabbing stunts, including paying $4.6 million for a lunch with Warren Buffett in 2019. He’s also planning a spaceflight, and says he’ll bring Grenada’s flag along for the ride.

We also covered Sun in October 2021 after he bought 3 Digital Zones NFTs for $2 Million and donated them to APENFT Foundation.