Trump Media & Technology Group Corp. (DJT) shares surged 5.34% in pre-market trading on Tuesday, following the announcement of a major strategic partnership with Crypto.com and the formation of a new digital asset treasury company.

The company revealed plans to establish Trump Media Group CRO Strategy, Inc., a digital asset treasury company focused on acquiring the native cryptocurrency token of the Cronos ecosystem (CRO). This new venture is set to be majority-owned by Yorkville Acquisition Corp., Trump Media, and Crypto.com as founding partners.

The deal involves a substantial financial commitment, with expected funding for the digital asset treasury to include $1 billion in CRO (representing 19% of the total CRO market cap), $200 million in cash, and $220 million in cash-in mandatory exercise warrants. Additionally, an equity line of credit of $5 billion from an affiliate of Yorkville has been secured, potentially making it the largest publicly traded CRO treasury company.

As part of the partnership, Trump Media will integrate the CRO token on its Truth Social and Truth+ platforms, while Crypto.com will purchase $50 million in shares of Trump Media. The deal also includes synergies such as providing free or discounted Truth+ subscriptions for users who open a Crypto.com account, further solidifying the strategic alliance between the two companies.