- SRM Entertainment revealed a reverse merger with Justin Sun’s Tron group to join its NASDAQ listing on Monday.
- SRM shares surged by 290% within hours after the news, rising from $1.70 to a peak of $6.70 per share.
- In the two days before the official announcement, SRM stock jumped 67% despite no related news or filings.
- The deal features significant ties to the Trump family, with Dominari Securities headquartered in Trump Tower and Donald Trump Jr. and Eric Trump listed as advisors.
- Eric Trump denied reports that he would have a direct role at the new Tron entity after the merger.
SRM Entertainment announced at 8:30 a.m. on Monday that Justin Sun’s Tron group will merge into its NASDAQ-listed company through a reverse merger. The move represents Sun’s first major transaction to list his crypto-focused business on a primary U.S. stock exchange.
Shortly after the announcement, SRM’s share price climbed sharply. Shares rose from $1.70 to $2.25 within one minute pre-market, reaching $6.70 just an hour later, a 290% surge. The stock also experienced a substantial 67% increase across the two days before the disclosure, despite the absence of notable news or updates from the company.
The deal attracted additional attention due to its connections to former President Donald Trump’s brand. Justin Sun is reported among the largest individual donors to Trump’s presidential campaign, following figures like Elon Musk. Dominari Securities, the investment bank leading the merger, is based in Trump Tower and lists Donald Trump Jr. and Eric Trump as advisors. According to a report from the Financial Times, Eric Trump was expected to have a role at the merged Tron entity, though Eric Trump has since publicly denied any involvement.
Leading up to the announcement, SRM’s shares had mostly traded between $0.30 and $0.90 throughout the year. The company announced a $5 million capital raise in late May, but no further significant updates were released in June. On the Thursday and Friday before the merger news, SRM’s stock broke above previous highs and closed at $1.45, even without related headlines or SEC filings.
Despite online speculation and some technical analysis posted on platforms like X and SeekingAlpha, no clear explanation emerged for the early rally before the deal was made public. Some traders noted the stock’s unusual movement, while others attempted to attribute the gains to SRM’s theme park merchandise.
The reasons behind the pre-announcement spike in SRM stock remain uncertain. It is unclear if the rise was due to luck, analysis, or possible advance knowledge of the pending Tron merger.
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