Nasdaq-listed Tron Inc. has doubled its cryptocurrency treasury holdings after its largest shareholder injected $110 million worth of TRX tokens into the company's reserves. The investment brings Tron Inc.'s total TRX holdings to more than $220 million, cementing its position as the largest public holder of the blockchain's native token.

What to Know:

• Bravemorning Limited exercised warrants to add 312.5 million TRX tokens worth $110 million to Tron Inc.'s treasury
• The company now holds an 86.6% stake in Tron Inc. after investing a total of $210 million since the merger
• Tron Inc.'s stock has surged over 1,128% in the past six months, though experts warn of risks in holding native tokens as treasury assets

Corporate Strategy Raises Questions About Self-Referential Risk

Bravemorning Limited, which controls 86.6% of Tron Inc., exercised warrants to purchase 312.5 million TRX tokens at approximately $0.35 per token. The transaction was disclosed in a Tuesday news release that highlighted the company's aggressive accumulation strategy.

"With this additional $110 million investment from our largest shareholder, Tron Inc. has strengthened its position as the largest public holder of TRX tokens," CEO Rich Miller stated. The executive did not address potential risks associated with the circular nature of the investment structure.

Tron Inc. emerged through a reverse merger with SRM Entertainment in June, securing $100 million in equity alongside preferred shares and warrants valued at $210 million. The deal brought Tron blockchain founder Justin Sun aboard as an adviser, adding credibility to the venture's Web3 ambitions.

Regulatory Filings Signal Billion-Dollar Expansion Plans

The company filed with U.S. regulators in July seeking authorization to raise up to $1 billion through various financial instruments. These include common stock, preferred stock, debt securities, warrants and rights, with proceeds designated for expanding TRX reserves and Web3 business operations.

Market performance has validated investor confidence in the short term. Google Finance data shows Tron Inc. shares have gained more than 1,128% over six months, currently trading around $4.30 with minimal daily volatility.

The stock surge reflects broader enthusiasm for cryptocurrency treasury strategies that gained momentum in early 2025. Companies have increasingly followed MicroStrategy's Bitcoin-focused model, though newer entrants are diversifying into major altcoins including Ether, Solana and XRP.

Industry Experts Warn of Circular Investment Structure

Tron Inc.'s approach differs significantly from established crypto treasury strategies by holding its own blockchain's native token as a primary reserve asset. This self-referential structure has drawn criticism from industry analysts who question the sustainability of such arrangements.

"The company is essentially holding its own equity-like asset as collateral. This is circular and risky," said Jamie Elkaleh, marketing chief at Bitget Wallet, in an interview with Cointelegraph.

The circular nature creates potential feedback loops where declining confidence in Tron Inc. could depress TRX prices, further undermining the company's perceived value. This differs from companies holding Bitcoin or other established cryptocurrencies as treasury assets, where the underlying asset maintains independence from corporate performance.

Understanding Cryptocurrency Treasury Strategies

Corporate cryptocurrency treasuries have evolved from simple Bitcoin holdings to complex multi-asset strategies. TRX represents Tron blockchain's native token, used for transaction fees and governance within the network's ecosystem. Unlike Bitcoin, which operates independently of any single entity, TRX's value remains closely tied to Tron blockchain development and adoption.

Treasury strategies typically involve purchasing established cryptocurrencies like Bitcoin or Ether as inflation hedges or alternative stores of value. Companies holding their own native tokens face unique challenges, as asset performance directly correlates with corporate success, creating potential volatility amplification during market downturns.

Conclusion

Tron Inc.'s $110 million TRX acquisition demonstrates continued commitment to its native token strategy despite industry warnings about circular investment risks. While short-term market performance has rewarded shareholders with significant gains, the long-term viability of holding self-issued tokens as primary treasury assets remains questionable according to cryptocurrency market experts.