Trump Media Scraps CRO Treasury Deal, Scales Back Crypto Plans
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- Trump Media scrapped its planned Crypto.com-backed CRO treasury company and broader digital asset deal with Crypto.com, with the three parties citing "prevailing market conditions" and "shifting business and stakeholder priorities" for the mutual termination.
- The CRO token dropped sharply on the news, trading at $0.05 with a roughly $2.4 billion market capitalization.
- Trump Media abandoned plans to integrate prediction markets directly into Truth Social, pivoting instead to a marketing deal that promotes Crypto.com's prediction market products to Truth Social users.
- Interim CEO Kevin McGurn said the digital asset treasury company market became "increasingly crowded" over the past year and that staking had grown less important to Crypto.com, making it the right time to part ways.
- Crypto.com disclosed donating $35 million over the prior year to the pro-Trump super PAC MAGA Inc., and in February the OCC conditionally approved the exchange's application for a national trust bank charter.
- Senate Democrats including Sens. Elizabeth Warren and Richard Blumenthal are escalating scrutiny of Trump's crypto ventures ahead of November's midterms, urging the SEC to investigate whether Trump's meme coin facilitated fraud or unjust enrichment.
Why it matters: Trump Media is narrowing its crypto footprint in a market interim CEO Kevin McGurn calls "increasingly crowded," and the CRO token dropped sharply to $0.05 on a ~$2.4 billion market cap following the announcement. The retreat comes as Crypto.com disclosed $35 million in donations to the pro-Trump super PAC MAGA Inc. and as Senate Democrats intensify pressure on Trump's broader crypto dealings ahead of the November midterms.
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