TL;DR
- Tron Inc., a Nasdaq-listed company, filed for a stock offering of up to $200 million to fund additional TRX purchases.
- The company holds 718.9 million TRX tokens, worth approximately $237 million, and maintains a daily accumulation program.
- Tron shares opened 4.7% lower after losing approximately 67% of their value over the past twelve months.
Tron Inc., the Nasdaq-listed company, filed a stock offering of up to $200 million with the U.S. Securities and Exchange Commission (SEC) to finance additional purchases of the TRX cryptocurrency.
The transaction will be carried out through an at-the-market (ATM) stock offering program, allowing the company to issue and sell shares periodically.
According to the SEC filing, Clear Street will act as the sales agent and may receive a commission of up to 3% of the gross proceeds from share sales.
Tron Seeks to Expand Its TRX Treasury
The company has maintained a TRX accumulation strategy since February, when it announced a program to purchase approximately $50,000 worth of tokens daily for 360 consecutive days.
Following its latest purchase of 149,369 TRX at an average price of $0.3347 per token, the company’s treasury holdings reached 718.9 million TRX.
The estimated value of those holdings stands at $237 million, based on the prices cited in the report.
The new offering would provide additional capital to increase the company’s holdings of the Tron blockchain’s native token, although the final amount raised will depend on how many shares it sells.
Shares Have Fallen 67% Over the Past Year
The ATM program allows the company to sell shares gradually, rather than conducting a single offering for the entire authorized amount.
However, issuing new shares could also dilute existing shareholders’ ownership stakes, depending on the number of shares ultimately sold.
Tron shares opened the session 4.7% lower, according to Yahoo Finance data cited by the source. The company’s stock has declined approximately 67% over the past twelve months.
The SEC filing establishes a $200 million limit for the program, but this does not mean the company has already sold those shares or used that amount to purchase TRX.