Crypto entrepreneur Justin Sun’s blockchain network Tron will become a publicly traded company in the United States via a reverse merger with Nasdaq‑listed SRM Entertainment, the Financial Times reported.
The deal comes just four months after US market regulators agreed to pause a fraud investigation into several of Sun’s firms.
The new firm, to be named Tron Inc., will buy and hold the Tron token and follow a strategy similar to that of Michael Saylor’s bitcoin‑focused MicroStrategy. Dominari Securities, a boutique bank with ties to Donald Trump Jr and Eric Trump, is arranging the transaction.
Reverse Merger Deal Details
Under the agreement, Tron will inject up to $210 million worth of token assets into SRM Entertainment. Once the merger is complete, SRM’s existing public listing on Nasdaq will be used to trade Tron Inc. shares.
This approach lets Tron sidestep the traditional initial public offering process and list more quickly. SRM Entertainment’s stock price surged by as much as 647% on news of the transaction.
Role of the Trump Family
Reports suggested Eric Trump might take an active role in the newly formed Tron Inc. However, Eric Trump denied plans to join the venture.
On social media, he praised Sun as a “great friend and icon in the crypto space” and called himself Tron’s “biggest fan,” but stopped short of confirming any formal position.
SEC Investigation Paused
In 2023, Sun and three of his companies, including Tron, faced charges from the US SEC. The SEC accused them of selling unregistered securities and engaging in market manipulation.
After President Trump signalled a friendlier regulatory stance on digital assets, the SEC and Sun jointly asked the court in February to pause the lawsuit. This pause allows both sides to explore a potential settlement.
Sun’s Ties with Trump Ventures
Justin Sun has cultivated closer ties with the Trump family in recent months. In May, he joined President Trump and 24 other top holders of the “$Trump memecoin” at a private banquet at Trump National Golf Club in Virginia.
Sun also invested $75 million in World Liberty Financial, a cryptocurrency firm affiliated with the Trump family. Last week, World Liberty issued its first stablecoins on the Tron blockchain. The president has reportedly earned about $57 million from his stake in that company.
Founder’s Profile
Sun first drew major attention in 2019 by winning a $4.6 million charity auction for lunch with Warren Buffett. He also made headlines last year by paying $6.2 million for a banana taped to a wall—then eating it on camera.
Though born in China, Sun holds citizenship in St. Kitts and Nevis and once served as Grenada’s representative to the World Trade Organisation. His flair for high‑profile stunts has earned him a controversial reputation in the crypto world.
Transaction Mechanics and Future Plans
Dominari Securities, which has its offices in Trump Tower just below the Trump Organisation, is leading the merger process. After closing, Tron Inc. plans to stake its TRON holdings, distribute dividends, and build value for long‑term shareholders through digital asset exposure.
This mirrors the bitcoin‑buying tactic popularised by MicroStrategy’s Michael Saylor, aiming to benefit from rising token prices over time.