Nasdaq-Listed Tron Files $200 Million At-the-Market Share Offering to Expand TRX Treasury
Key Takeaways
- •Tron’s proposed ATM offering could raise as much as $200 million for expanding its TRX treasury.
- •The company holds 718.9 million TRX tokens valued at about $237 million after its latest purchase of 149,369 TRX.
- •Clear Street LLC will serve as sales agent and may receive commissions of up to 3% of gross proceeds.
- •Tron’s existing accumulation plan targets approximately $50,000 in TRX purchases per day for 360 consecutive days.
- •Tron shares opened 4.7% lower Thursday and were on track to extend a roughly 67% 12-month decline.
Nasdaq-listed digital asset treasury company Tron (TRON) has filed for a new at-the-market (ATM) share offering that would allow it to sell up to $200 million of common stock, with proceeds earmarked to build out an even-larger Tron (TRX) token treasury.
The company already holds roughly $237 million worth of TRX and plans to raise additional capital to fund further purchases, alongside its existing program of daily accumulation. If fully utilized, the new offering would be of a similar scale to its current holdings and more than ten times the roughly $18 million of planned purchases under its existing accumulation plan.
According to a Wednesday filing with the United States Securities and Exchange Commission (SEC), the arrangement allows Tron to periodically sell shares of its common stock, which carries a par value of $0.0001, through Clear Street LLC. Clear Street will act as sales agent for the offering and will retain a commission of up to 3% of the gross proceeds, according to the ATM prospectus. Tron has also filed a related exhibit with the SEC in connection with the program. At that maximum rate, agent fees would reach $6 million on a fully subscribed raise.
At-the-market offerings give publicly listed companies a flexible way to raise capital over time by selling shares into the open market at prevailing prices, rather than issuing a fixed block of stock at a single set price. For Tron, that means the pace of share sales — and the corresponding TRX purchases — will unfold over time rather than on a fixed schedule.
The planned raise builds on the company's existing TRX accumulation program, announced in February, which calls for the purchase of approximately $50,000 worth of TRX per day for 360 consecutive days. The buy-and-hold treasury structure places Tron alongside other listed crypto treasuries that hold tokens such as TRX and XRP on their balance sheets, including the XRP-focused Evernorth.
Following its latest acquisition of 149,369 TRX at an average price of $0.3347 on Thursday, Tron's treasury holds 718.9 million TRX tokens, currently valued at about $237 million. TRX is the native token of the Tron blockchain network.
Shares of the company opened 4.7% lower on Thursday, poised to extend a roughly 67% decline over the past 12 months, according to Yahoo Finance.
Related: XRP treasury Evernorth's shares rise 5% at Nasdaq opening print
Source: Cointelegraph
