Crypto Billionaire Justin Sun’s Tron Group to Go Public via Reverse Me

Crypto billionaire Justin Sun’s Tron Group is set to go public through a reverse merger with a small Nasdaq-listed toy company—his latest move to bring his digital currency empire to the United States.

SRM Entertainment (up 533.8% on June 16) announced that it will change its name to Tron and that Sun has been appointed as an advisor to the company. SRM also said it has signed a securities purchase agreement for a $100 million investment aimed at acquiring TRX, Tron’s digital token. The announcement comes after Sun attended a gala dinner in May with U.S. President Donald Trump, organized for top holders of Trump’s memecoin. The event was criticized by Democrats and government watchdog organizations as a blatant act of self-enrichment, allowing major crypto investors access to the president. Sun reportedly accumulated over $20 million worth of the memecoin to secure his seat at the dinner.

The Public Listing "This time, the moment has come," Sun wrote in a Chinese-language social media post on June 16, referring to the deal with SRM. Representatives for Tron did not immediately respond to requests for comment.

SRM, based in Winter Park, Florida, currently designs and manufactures toys, souvenirs, and plush products for theme parks and entertainment initiatives. Its online catalog features items such as Smurfs water bottles and plush toys like Hanna Hedgehog and Gideon Gator. Following the announcement, SRM shares soared over 500%, closing at $9.19 on June 16.

The toy company said it will acquire TRX to implement a "Tron treasury strategy," referring to a growing trend among public companies announcing plans to add cryptocurrencies to their balance sheets. Dozens of firms with no previous ties to crypto have adopted this strategy, selling shares and bonds to buy digital tokens. While many have purchased Bitcoin—the oldest and most widely used cryptocurrency—others have announced plans to acquire smaller tokens like Ether, Solana, and Trump’s memecoin.

Ties to the U.S. President Dominari Securities, a small investment firm headquartered in Trump Tower, is solely responsible for finding investors and managing the capital raise for SRM’s token deal. In February, Dominari shares rose after the firm appointed Trump’s sons, Eric Trump and Donald Trump Jr., as advisors.

Sun has been actively seeking closer ties with the Trump family since the November elections. He invested $75 million in World Liberty Financial, a crypto initiative backed by the Trump family, and became an advisor. HTX, a crypto exchange effectively led by Sun, recently became the first to list World Liberty’s USD1 stablecoin, which is pegged to the U.S. dollar.

Troubles with the SEC Just months ago, Sun faced charges from the U.S. Securities and Exchange Commission (SEC), which accused him in 2023 of manipulating the market for Tron’s TRX token. In February, the SEC asked a court to pause its fraud case against Sun and three of his companies, as part of a broader rollback of crypto regulations under the Trump administration. Sun has maintained that his investment in World Liberty is not politically motivated and has called the SEC’s lawsuit baseless.

IPO Details According to the terms of the deal, SRM will issue 100,000 Series B shares convertible into 200 million common shares at $0.50 per share. The company will also issue 220 million warrants, allowing SRM to purchase up to 220 million common shares at an exercise price of $0.50 each.

The investment, valued at $210 million if all warrants are exercised, will enable SRM to develop a robust Tron treasury strategy, the company stated. SRM added that the move aligns with its goal to create long-term shareholder value by leveraging global blockchain adoption and digital innovation. As part of the Tron treasury strategy, SRM also plans to implement a dividend distribution policy.

“With the increasing global adoption of blockchain technology, Tron has become the industry leader in cross-border payments using U.S. dollar stablecoins,” said CEO Rich Miller. “We’re excited to invest in the future of next-generation financial infrastructure.”