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Trump Media pulls back from crypto, scraps Crypto.com's CRO token treasury deal
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- DeepHorus
Trump Media is pulling back from its cryptocurrency ambitions, scrapping a planned publicly traded venture with Crypto.com. The parent company of Truth Social announced Friday that it and Crypto.com mutually terminated plans for Trump Media Group CRO Strategy. The proposed entity would have accumulated and staked Cronos' native CRO token. The firms cited "prevailing market conditions, and shifting business and stakeholder priorities" for the decision.
The move marks a sharp reversal from Trump Media's aggressive crypto expansion in 2025. During that period, the company purchased $105 million in CRO and explored digital asset products. The companies also dropped a separate agreement for Crypto.com to service certain planned Yorkville America exchange-traded funds. Additionally, Trump Media is scaling back plans to build Crypto.com-powered prediction markets directly into Truth Social, according to Axios.
Investors reacted quickly to the news, with CRO falling as much as 5% on Friday. The unwind comes amid a broader slowdown in the digital asset treasury market. Interim CEO Kevin McGurn told Axios that the market has become saturated, forcing Trump Media to refocus. The company will now prioritize its core media operations, data licensing, and the pending merger with fusion-energy firm TAE.
McGurn expressed confidence in completing the TAE merger before the end of 2026. This pivot also occurs as the CLARITY Act remains stalled in Washington. Lawmakers have debated ethics and potential conflicts of interest tied to President Donald Trump and his family's crypto ventures. The political uncertainty adds another layer of complexity to Trump Media's strategic retreat.
For now, Trump Media appears to be repositioning itself as a traditional media and technology company. The scrapped CRO treasury deal signals that the speculative frenzy around corporate crypto treasuries may be cooling. Whether the company can successfully complete its fusion-energy merger and revitalize Truth Social remains to be seen. The coming months will test its ability to navigate both regulatory headwinds and market realities.
