Justin Sun’s Father Gains Board Control in $100M TRX-Backed SRM Deal

SRM Entertainment, a Nevada-based firm soon to be renamed Tron Inc., disclosed a $100 million private investment in public equity (PIPE) deal funded entirely in TRX tokens, according to a recent SEC filing. The transaction grants Justin Sun’s father, Weike Sun, significant control, positioning him as chairman and installing Tron-aligned advisors in key board roles.

Weike Sun’s investment vehicle purchased 100,000 shares of SRM Series B preferred stock using TRX tokens. These shares are convertible into 200 million common shares, and the deal also included 220 million warrants at a $0.50 strike price. While this strengthens the influence of the Tron ecosystem, Tron DAO itself is not directly involved. Strategic adviser Steve Liu, CEO of stablecoin issuer Techteryx, and Zi Yang, a Tronscan executive, joined SRM’s board committees, reinforcing indirect alignment with Tron’s network.

Despite these connections, Liu clarified that the transaction is led by Weike Sun independently. Tron DAO holds no governance rights or financial stake in SRM. The 8K filing confirms that the DAO is not formally listed in the deal.

Financial Times reported that the newly rebranded Tron Inc. aims to hold up to $210 million in TRX, mimicking MicroStrategy’s Bitcoin treasury strategy. The transaction was facilitated by Dominari Securities, an affiliate of Dominari Holdings, which includes Donald Trump Jr. and Eric Trump on its advisory board. Dominari received $50,000 for facilitating the deal.

As of market close, SRM shares dropped 15% to $7.73, while TRX fell 2.5% to $0.27. The high-profile nature of this TRX-funded acquisition and board shake-up may signal broader ambitions for Tron-aligned corporate strategies.