Verb Rebrands as TON Strategy Co. After $558M Fundraise for Crypto Treasury

Verb Technology, a Nasdaq-listed firm, has completed a $558 million private placement to launch the first publicly traded company focused on holding Toncoin (TON) as its primary treasury reserve asset. The oversubscribed funding round attracted participation from over 110 institutional and crypto-native investors, including Pantera Capital, Kraken, BitGo, and Blockchain.com, as well as individual investors such as Ethena Labs founder Guy Young [1]. The company is set to rebrand as TON Strategy Co., with proceeds primarily allocated to acquiring and staking TON tokens [2].

The transaction, led by Kingsway Capital, highlights a strategic pivot from Verb’s previous focus on AI-driven social commerce platforms like MARKET.live and LyveCom. The new business model centers on TON’s integration with Telegram’s ecosystem and its Mini App platform, which boasts over 900 million global users. This shift aims to leverage TON’s potential for broader adoption through Telegram’s extensive user base [3]. The firm’s leadership now includes TON Foundation President Manuel Stotz as chairman, former Morgan Stanley banker Veronika Kapustina as CEO, and JPMorgan Onyx alumnus Sarah Olsen as CFO [4].

The rebranding and restructuring reflect growing institutional confidence in TON. Verb’s move follows reports that the TON Foundation had sought approximately $500 million to establish a TON treasury company in early July. By securing the funding through a publicly traded vehicle, Verb effectively fulfills that goal while offering traditional investors a regulated pathway to gain exposure to the TON token [5]. Analysts have noted that the firm’s transition could enhance TON’s credibility in traditional financial markets and potentially stabilize the token’s value [6].

The fundraising comes at a time when TON has shown relative price stability around $3.39, despite broader market volatility. The token’s resilience is partly attributed to its growing institutional adoption, including Verb’s large-scale commitment. The company’s treasury strategy involves holding and staking TON tokens, generating cash flow through staking rewards while maintaining long-term exposure to the asset. This approach contrasts with traditional corporate treasury management, which typically focuses on liquid and short-term assets [7].

Despite the shift in focus, Verb will continue operating its existing social commerce businesses. However, the $558 million raise suggests that TON-related activities will dominate near-term capital deployment. The firm has not yet disclosed specific allocation targets between legacy operations and new crypto treasury initiatives, but the majority of proceeds are expected to be directed toward TON acquisitions [8].

Verb’s transformation marks a significant development in the institutionalization of TON and underscores the growing convergence between traditional finance and blockchain-based assets. The company’s move could influence broader market dynamics by increasing TON’s liquidity and visibility. As the firm transitions into a TON-focused treasury company, it will be closely observed by investors and the crypto community for further developments in its strategy and performance.

Sources:

[1] (https://coinmarketcap.com/community/articles/689c0d976529dc757c160e89/)

[6] (https://coincodex.com/crypto/toncoin/)