Under the securities purchase agreement, SRM will use the initial investment to build a substantial TRX reserve and expand its exposure to blockchain-based financial infrastructure. The company will issue 100,000 shares of Series B convertible preferred stock. These securities can be converted into 200 million common shares at a conversion price of $0.50 per share.
The investor will also receive 220 million warrants carrying an exercise price of $0.50 per share. Full exercise of those warrants could provide SRM with an additional $110 million, bringing the potential total value of the transaction to $210 million. This distinction is important: SRM did not announce an immediate $210 million investment. The confirmed initial placement was $100 million, while the remaining amount depended on whether the warrants would later be exercised.
Justin Sun Joins SRM as an Adviser
Justin Sun, founder of the TRON blockchain, was appointed as an adviser to SRM Entertainment as part of the agreement. His role is expected to support the company’s shift toward digital assets and the implementation of its TRX treasury strategy.
In the company’s announcement, Sun described stablecoins and blockchain technology as tools that could make global payments faster, cheaper and more transparent. SRM attributed more than 310 million international user accounts and average daily year-to-date transaction volume exceeding $20 billion to the TRON network. These figures were presented by the company and Sun as part of the transaction announcement and should be understood as claims from the parties involved in the deal.
SRM Plans to Become Tron Inc.
SRM also said it planned to change its corporate name to Tron Inc. The proposed rebranding reflected the company’s intention to make TRX and blockchain infrastructure a central part of its future strategy.
At the time of the announcement, the name change had not yet been completed. It remained a forward-looking plan subject to the company’s execution of the broader transaction and related corporate procedures.
SRM further intended to introduce a dividend policy after successfully implementing a TRX staking program. Staking could allow the company to generate rewards from part of its token reserve, but the announcement did not guarantee the timing or size of any future shareholder distributions.
SRM CEO Rich Miller said the company viewed TRON as an important part of the growing infrastructure for international stablecoin settlements and wanted to invest in the next generation of financial technology.
Dominari Securities Arranges the Placement
Dominari Securities LLC served as the exclusive placement agent for the private offering. The securities were offered to accredited investors and had not been registered under the US Securities Act at the time of the announcement. The deal marked a major change in direction for SRM, which had primarily operated as a designer and manufacturer of toys, souvenirs and licensed merchandise for theme parks and entertainment venues.
Rather than TRON itself completing a traditional Nasdaq listing, the transaction gave a Nasdaq-listed company a TRX-focused treasury strategy and a formal advisory relationship with Justin Sun.
FORECK.INFO also examined the broader structure of the deal and its public-market implications in its report on TRON’s planned entry into the US public market through SRM Entertainment.
