Long
SRM - SRM Entertainment Inc (Soon to be TRON INC.)
SRM Entertainment (SRM) used to design, development, and delivery of toys and themed merchandise for the global amusement and entertainment industry. They work with popular brands like Harry Potter, Frozen, Marvel, and Star Wars to create exclusive products found in various venues. However, through a reverse takeover they're are planning to change their name to Tron Inc.
The main reason for this shift is a $100 million equity investment dedicated to a new TRON Token Treasury Strategy. Justin Sun, the founder of the TRON blockchain, is also coming on board as an advisor. This move means they're completely shifting away from their prior business to focus on revenue generation within the blockchain space, with plans to implement a dividend policy through TRX staking.
Financially, SRM's past performance showed some weaknesses, with negative net income. However, what they did in the past is meaningless and has nothing to do with what they are doing now. The new $100 million investment significantly changes their financial outlook, providing substantial capital for their new direction. Currently, they report around $1.09 million in cash and short term investments, with total assets at about $5.81 million and liabilities around $828K.
The move into blockchain with a significant investment and Justin Sun's involvement could position them in a growing technology sector. If the TRON Token Treasury Strategy is successful and the blockchain market expands, there's potential for upside and a dividend policy from TRX staking could attract investors.
Their new model focuses on the TRON Token Treasury Strategy. They plan to generate revenue by acquiring and holding TRON (TRX) tokens, benefiting if the TRX value increases. They'll also earn staking rewards by locking up their TRX holdings to support the TRON network, and, once stable, they intend to distribute a portion of these staking rewards as dividends to shareholders. This strategy ties their financial performance directly to the TRON blockchain ecosystem.
Overall, this is a high risk, high reward situation. It will requires careful monitoring given volatility of the crypto market. It's not a typical long term, low maintenance investment at this stage.
The main reason for this shift is a $100 million equity investment dedicated to a new TRON Token Treasury Strategy. Justin Sun, the founder of the TRON blockchain, is also coming on board as an advisor. This move means they're completely shifting away from their prior business to focus on revenue generation within the blockchain space, with plans to implement a dividend policy through TRX staking.
Financially, SRM's past performance showed some weaknesses, with negative net income. However, what they did in the past is meaningless and has nothing to do with what they are doing now. The new $100 million investment significantly changes their financial outlook, providing substantial capital for their new direction. Currently, they report around $1.09 million in cash and short term investments, with total assets at about $5.81 million and liabilities around $828K.
The move into blockchain with a significant investment and Justin Sun's involvement could position them in a growing technology sector. If the TRON Token Treasury Strategy is successful and the blockchain market expands, there's potential for upside and a dividend policy from TRX staking could attract investors.
Their new model focuses on the TRON Token Treasury Strategy. They plan to generate revenue by acquiring and holding TRON (TRX) tokens, benefiting if the TRX value increases. They'll also earn staking rewards by locking up their TRX holdings to support the TRON network, and, once stable, they intend to distribute a portion of these staking rewards as dividends to shareholders. This strategy ties their financial performance directly to the TRON blockchain ecosystem.
Overall, this is a high risk, high reward situation. It will requires careful monitoring given volatility of the crypto market. It's not a typical long term, low maintenance investment at this stage.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.