Justin Sun’s blockchain firm Tron Inc. (Nasdaq: TRON) filed an S-3 form with the Securities and Exchange Commission (SEC) on July 28, requesting to issue a mixed shelf security offering of up to $1 billion.
The company said it may offer and sell up to $1 billion in the aggregate of common stock, preferred stock, debt securities, warrants, rights, and units from time to time. It said:
“We may sell these securities directly to investors, through agents designated from time to time or to or through underwriters or dealers.”
Following the latest announcement, the TRON stock jumped as much as 25% to reach $12. It was trading at $10.97 at press time.
TRX, the native cryptocurrency of the Tron network, also rose nearly 0.8% and reached $0.327.
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Founded by Justin Sun in 2017, Tron Inc. is a blockchain company that went public on July 24, following a reverse merger with Nasdaq-listed SRM Entertainment.
It recently turned to the crypto treasury strategy pioneered by the likes of Strategy (Nasdaq: MSTR). It has added 365,096,845 TRX tokens to its corporate balance sheet, already building the largest TRX holdings.
Tron said it will use the proceeds from the sale of the upcoming securities, if approved, to acquire more TRX tokens. Nonetheless, it cautioned investors that its TRX token strategy hasn’t been tested over an extended period of time or under different market conditions.
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The TRX treasury company raised $100 million in TRX tokens in the June PIPE offering as Justin Sun’s father, Weike Sun, was appointed as Chairman of the company’s board. Zhihong Liu, the senior advisor to Tron DAO since 2021, and Zhihong Liu, who heads the Tron protocol’s official blockchain explorer Tronscan, also joined the board.
