Cronos (CRO 0.29%) is recording another day of explosive gains this Thursday. The cryptocurrency's token price was up 30.1% over the past 24 hours as of 6:15 p.m. ET. Over the same period, Bitcoin was up 1%, and Ethereum was flat.
Cronos is a cryptocurrency launched and maintained by Crypto.com, a crypto website and trading exchange platform. The token has seen massive gains recently following news of an expanded partnership with Trump Media and news that the company connected to President Donald Trump is making moves to launch a new cryptocurrency treasury. As of this writing, the token is up 131% over the last week of trading.
Image source: Getty Images.
Cronos keeps soaring thanks to the Trump deal
On Tuesday, Trump Media announced that it had entered into a partnership with Yorkville Acquisition Corp. that will create a large new cryptocurrency treasury company. Yorkville Acquisition is a special purpose acquisition company (SPAC) and will be merging with Crypto.com to create Trump Media Group CRO -- a new publicly traded company built around crypto holdings.
The new company will purchase roughly $1 billion worth of the Cronos token, and investors have been bidding up the coin in response to the news. At the time of the announcement, a $1 billion position represented a roughly 19% stake in Cronos.
CRYPTO: CRO
Key Data Points
What's next for Cronos?
In addition to its $1 billion Cronos treasury, Trump Media Group CRO will have $200 million in cash and $220 million cash-in mandatory exercise warrants as well as a credit offering worth up to $5 billion from one of Yorkville's affiliates.
Trump Media is poised to own a majority stake in Trump Media Group CRO upon the completion of the SPAC merger. While the Cronos token seems to be attracting some powerful new allies, it remains to be seen if the cryptocurrency will be able to sustain bullish momentum or lose steam if its fundamentals are unable to support recent gains.
