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Trump Media Abandons Crypto Treasury, Prediction Market Ventures
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- DeepHorus
Trump Media & Technology Group has abruptly terminated its corporate crypto ventures with Crypto.com, scrapping a proposed CRO treasury company and a broader digital asset partnership. The decision, confirmed through a report by Axios, marks a significant reversal for the parent company of Truth Social, which had aggressively expanded into digital assets over the past year. The companies, along with special purpose acquisition company Yorkville Acquisition Corp., mutually agreed to kill the Trump Media Group CRO Strategy, a services agreement, and related digital asset products, citing "prevailing market conditions" and "shifting business and stakeholder priorities."
The abandoned treasury venture was unveiled in December 2025 and would have licensed the Trump Media name to a firm built around Crypto.com's Cronos blockchain and its CRO token. Partners had touted it as the first and largest publicly traded CRO treasury company, planning to accumulate the token and generate returns from holdings. News of the termination sent CRO tumbling to $0.05, with its market capitalization shrinking to roughly $2.4 billion. The token's sharp decline illustrates investor sensitivity to the collapse of the high-profile deal.
Interim CEO Kevin McGurn explained that the market for digital asset treasury companies has become increasingly crowded, making the venture less attractive. He added that staking has become less important to Crypto.com's core strategy, creating a natural opportunity for the companies to part ways. Trump Media is also abandoning its plan to integrate prediction markets directly into Truth Social, instead opting for a marketing arrangement that promotes Crypto.com's prediction products to its users. McGurn noted that prediction markets have also grown crowded, leading Trump Media to focus on being a distribution and data partner rather than an operator.
The unraveling comes after a rapid escalation in ties between Trump Media and Crypto.com. In October 2025, the companies announced Truth Predict, a Crypto.com-powered prediction market integrated with Truth Social. By December, they unveiled the treasury company plan with Yorkville, which was expected to hold billions of CRO tokens. In February, Crypto.com disclosed a $35 million donation to the pro-Trump super PAC MAGA Inc., and the Office of the Comptroller of the Currency conditionally approved the exchange's national trust bank charter application.
Democratic lawmakers have seized on Trump's expanding crypto business dealings. Earlier this week, Senators Elizabeth Warren and Richard Blumenthal urged the SEC to investigate President Donald Trump's meme coin, arguing the agency should determine whether it facilitated fraud or unjust enrichment. This request reflects growing Democratic scrutiny ahead of November's midterm elections, with critics questioning potential conflicts between Trump's political office and his financial interests.
Industry analysts view the termination as a strategic retreat rather than a total exit from crypto. Trump Media's pivot toward a marketing role suggests it still sees value in digital assets without the regulatory and operational burdens of running treasury or prediction market businesses. The company's existing Truth Social Funds ETFs will continue unchanged, providing a stable revenue stream. As the regulatory environment intensifies and partisan tensions rise, Trump Media appears to be consolidating its focus on core media operations while keeping a cautious foothold in the crypto ecosystem.
