Nasdaq-listed Tron filed for an at-the-market share offering of up to $200 million to fund a larger TRX treasury. The company already buys TRX daily, and its shares opened lower after the filing.
Tron has filed for a new at-the-market (ATM) share offering that lets it sell up to $200 million of common stock. The proceeds are meant to fund an even-larger treasury of TRX tokens.
Clear Street handles the sales
Under the deal, Tron can periodically sell shares of its common stock at $0.0001 par value through Clear Street, according to a Wednesday SEC filing. Clear Street acts as an agent and retains a commission of up to 3% of gross proceeds.
Crypto Briefing reports that most of the money is earmarked for buying more TRX, with the rest going to general working capital. It adds that Tron Inc. is not required to sell the full $200 million.
Daily buying continues alongside the offering
The offering runs next to the company's existing accumulation program. Announced in February, that program calls for buying approximately $50,000 worth of TRX per day for 360 consecutive days.
Tron's treasury holds 718.9 million TRX tokens, currently worth about $237 million. The company's latest acquisition added 149,369 TRX at an average price of $0.3347 on Thursday.
Shares open lower
The company's shares opened 4.7% lower on Thursday, poised to extend their roughly 67% 12-month decline, according to Yahoo Finance.
Crypto Briefing names dilution as the main concern for existing shareholders, since every new share sold through the ATM shrinks each holder's ownership slice. Crypto Briefing lists how much of the ATM gets used and how quickly TRX holdings grow among the things to watch.
Sources: Cointelegraph, Crypto Briefing
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