It was impossible to predict that the company behind Disney-themed trinkets would become Tron’s biggest public backer. With $100 million rolling out and Justin Sun rolling out in the corner, SRM is rewriting corporate scripts, one blockchain transaction at a time.
On June 30th, Florida-based SRM Entertainment locked 365 million TRX tokens worth around $100 million to JustLend.
The move was confirmed in a press release on Monday, and is attempting to generate annual yields of up to 10% by combining standard staking rewards, a unique feature of Tron’s network economics, with energy rentals. Following SRM’s previous $100 million allocation to the Treasury Department’s TRX, it positions the former toy maker as the largest public holder of cryptocurrency.
The development is the latest in a series of calculation steps for the Florida-based company, tapping Tron founder Justin San as his strategic advisor and appointed Wakesan to the new board chair earlier this month.
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Why Tron? The rationale behind SRM’s $100 million bet
The aggressive pivot of SRM to Tron can be seen as a calculated bet on the growing advantage of blockchain in two key areas.
Tron now hosts Stablecoins, which have won more than $80 billion, primarily in USDT, making it the go-to network for cross-border transactions in emerging markets. The edge of the network is in the low-cost payments layer, which is attractive for high-frequency trading and energy rental mechanics, which is attractive for maximizing egg-laying.
For SRM, a company once known for selling Mickey Mouse stuffed toys, this represents a deliberate shift towards assets that have not only traded volatility, but also of real-world utility.
“Tron Financial Strategy continues to unlock new value for shareholders. We hope that SRM will benefit as blockchain technology adopts globally. Tron is the industry leader in cross-border settlements for our shareholders.
By deploying 365 million TRX through JustLend, SRM taps two revenue streams. Standard staking rewards (approximately 5-6% per year) and energy rental, a unique feature of Tron’s network where users pay to rent computational resources.
This hybrid approach boosts potential yields to 10%. For context, Apple’s Treasury, which holds more than $160 billion in cash, cash equivalents and marketable securities, generates an average yield of around 4.3-4.7% on these reserves.
However, higher yields are more risky. Unlike Apple’s dollar-backed instrument, the TRX relies heavily on the Justin Sun’s ecosystem and remains a volatile cryptocurrency relying on unclear regulators in the United States.
Tron’s legal quagmire and the controversial history of the sun means that the fate of SRM is tied to a person of code polarisation. For shareholders, the promise of 10% yield and blockchain play registered with NASDAQ may be appealing. For skeptics, it is an act of high wires without a safety net.
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