Summary Tron Inc. continues to trade at a 3.3x premium to its underlying TRX and sTRX holdings. The company's asset value is approximately $270 million, while its market cap approaches $890 million post-share conversions. Staking TRX yields only 5%, barely above 5Y Treasury Bonds, making it unattractive for yield-focused investors. I maintain a hold rating, as TRON is an inefficient vehicle for TRX exposure and offers limited income appeal. Tron Inc. ( TRON ) is akin to a Tron (cryptocurrency) treasury company. The company's main activity is to hold Tron. In the past , I have found that Tron trades at a significant premium to its underlying assets, and that holding it for the staking yield of its asset (the only income the company generates) provides a return way below less risky options. This analysis reviews the latest quarterly information ( 4Q25 and 1Q26 ) and finds a very similar situation: the premium on the company's assets has actually widened to 3x. This leads me to keep my opinion that the company is not the best way to purchase Tron crypto if one is interested in that (on which I am not, additionally). For this reason, I keep my Hold. Movements in assets Because Tron is a treasury company, its most important data is not really in the income statement, but rather in the balance sheet, cash flow statement, and notes. In my last article, the company's balance sheet was composed mainly of Tron crypto (TRX-USD) and sTRX (staked TRX) holdings of roughly 677 million tokens against approximately 457 million shares on a fully diluted basis (considering dilution stemming from Preferred Conversion). In 4Q25 (as described in the 1Q26 10-Q ), a company controlled by Justin Sun (founder of TRX and son of Tron Inc's Chairman and controlling shareholder), purchased $18 million in shares from the company (approximately 13 million shares or a $1.4/share price). The company used the proceeds to form an agreement to purchase $50 thousand TRX daily for one year, of which approximately $3.4 million had been expensed as of 1Q25. As of the end of 1Q25, therefore, the company had 11.7 million TRX on its balance sheet, plus ~550 million sTRX, plus $15 million in the agreement for cost-averaging TRX still not deployed (equivalent to about 45 million additional TRX at current prices). Because sTRX does not accrue classical staking yields under which more tokens are generated, but rather via an adjusted exchange rate with TRX, the sTRX is currently worth about 35% more than TRX ($0.45 versus $0.33) The fair value of these holdings as of early June is approximately $4 million in TRX, plus $250 million in sTRX and $15 million in the purchase agreement to be converted into TRX. The total is around $269 million. The company's operations did not change this calculation because the recognized staking gains in the income statement do not change the number of sTRX held, but rather their exchange rate against TRX, and indirectly, therefore, their conversion value to USD. The company also recorded large ($20 million) unrealized gains in digital assets, which stem from the appreciation of TRX in the period. Premium continues to increase After the quarter (as reported under Subsequent Events on the 1Q26 10-Q ), the company's Preferred B shares were converted into 200 million shares. This, plus the issuance of shares against $18 million in funds in Q4, implies a fully diluted share count close to 480 million already, most of which will show up as basic and issued in the Q2 10-Q. Compared to a share price of $1.85, this implies a market cap of close to $890 million. This compares rather expensive to the value of the underlying TRX and sTRX holdings, which, as seen above, amount to 'only' ~$270 million, plus $10 million in uncommitted cash (the company's liabilities are $2.7 million in total and therefore mostly irrelevant for this discussion). This implies a 3.3x premium in the market cap compared to the underlying value of the company's assets. Therefore, if anyone wanted to purchase TRX, $1 could buy 3.3x more TRX directly than buying TRON stock indirectly. A second, less important question is whether it is interesting to hold TRX. The DAO platform, through which TRON stakes its TRX (called JustLend), publishes a 5% yield on the staked TRX, which is only 80bps more than what a 5Y Treasury Bond yields. In this respect, and considering that the USD has the backing of the largest economy in the world, versus TRX being just another alternative cryptocurrency, it doesn't seem to be very attractive. Still, the main value of holding TRX is probably speculative, expecting it to go up, for which I cannot really provide an opinion. I believe holding TRX for its yield merits is not attractive, and that, even if TRX were attractive for speculative purposes, buying them at 3x+ the price via TRON is not. For these reasons, I keep my hold.
