- On July 28 Tron Inc. filed a shelf registration statement with the SEC.
- The company is seeking to issue securities worth up to $1 billion to purchase TRX.
- TRX is the only major crypto in the green over the past seven days.
In the last seven days, 19 of the top 20 cryptocurrencies by market capitalization have declined in value, with only TRX bucking the bearish trend.
The token’s upward momentum comes as Tron Inc. has filed to issue up to $1 billion in mixed securities to fund its TRX treasury strategy.
Tron Inc. Pursues TRX Treasury Strategy
Tron Inc. was formed earlier this year via a reverse merger with the Nasdaq-listed SRM Entertainment.
On July 28, the newly public company filed a shelf registration with the U.S. Securities and Exchange Commission (SEC). Under the proposal, the company would be allowed to issue up to a billion dollars worth of securities, including common stock, preferred stock, debt securities, warrants, rights, and units.
According to the filing, Tron Inc. is already “the public company with the largest [TRX] holdings,” with over 365 million tokens on its balance sheet.
Our TRX token strategy generally involves […] issuing debt or equity securities or engaging in other capital raising transactions with the objective of using the proceeds to purchase TRX tokens,” the form states.
TRX Bucks Market Trend
Following the Tron filing, TRX jumped 8% on Tuesday, July 29, moving in the opposite direction to the overall market and bringing it close to its all-time high.
Even after it retraced some of its gains, TRX remained in the green as other coins declined on Wednesday and Thursday.
With other cryptocurrencies struggling, TRX flipped DOGE to become the ninth-largest coin by market cap, and it is now snapping at the heels of Lido Staked ETH for eighth position. (Or sixth discounting stablecoins.)
Crypto and Macroeconomics
While TRX’s Tuesday rally coincided with Tron Inc.’s SEC shelf registration, other forces could also be behind the token’s comparative recent strength.
Bitcoin and other major cryptocurrencies fell on weak U.S. job data and new tariffs, reflecting a longstanding connection between the crypto market and the health of the U.S. economy.
In contrast, Tron remains closely linked to China, despite founder Justin Sun’s efforts to forge ties with the Trump family.
It is worth noting that one of the only other cryptocurrencies to gain ground in the past week is Toncoin (TON).
Like TRX, TON is an anomaly among crypto projects because it isn’t strictly tied to American economic performance. Adoption of both blockchains is most prevalent in China and Russia, respectively, a fact that is often reflected in their token trajectories.
