Bitcoin News Today: Verb Tech Rebrands as TON Strategy Co. and Buys 166M Toncoin with $558M PIPE

Verb Technology (NASDAQ: VERB), formerly a company focused on video and sales tools, has undergone a dramatic strategic shift, rebranding to TON Strategy Co. and positioning itself as the first publicly traded firm to adopt Toncoin (TON) as a treasury asset [1]. The company secured $558 million through a private investment in public equity (PIPE) offering, raising capital from over 110 institutional and crypto-native investors. With this funding, the firm plans to allocate heavily into TON, the native token of Telegram’s blockchain, now with over one million monthly active users [1].

This move mirrors MicroStrategy’s approach to Bitcoin, but in the case of TON, it is far more radical. Unlike Tesla, which added Bitcoin to its portfolio without altering its core business, Verb has completely restructured its identity to align with TON. At Toncoin’s current price of $3.35, the company could potentially accumulate up to 166 million TON, making it one of the largest institutional holders overnight [1].

The financial strategy behind this pivot differs from that of MicroStrategy, which has relied on debt to acquire Bitcoin. Instead, Verb raised capital through an upsized PIPE, issuing approximately 58.7 million shares, including pre-funded warrants, at $9.51 per share—matching its closing price on August 1. This structure allowed the company to avoid leveraging its balance sheet while gaining exposure to the token [1].

The market reacted strongly to the news, with Verb’s stock surging 115% following the announcement, signaling robust investor sentiment toward the narrative of being the first public proxy for TON. However, the token itself has faced mixed price action. Despite the hype, Toncoin failed to break a key resistance level of $4, retreating 5.79% after five consecutive weeks of gains, suggesting a potential divergence in momentum [1].

The broader implication is that Verb’s stock is currently trading on a narrative premium rather than fundamental metrics. While the idea of a publicly traded TON proxy has driven enthusiasm, the long-term viability of this model will depend on the performance of the token itself. If Toncoin fails to rally soon, the mark-to-market value of Verb’s holdings may not justify its current valuation premium relative to traditional crypto treasury plays [1].

This development underscores growing institutional interest in alternative blockchain ecosystems, particularly those with strong user bases and innovative use cases. However, it also highlights the risks of narrative-driven investing in digital assets, where market sentiment can shift rapidly and materially impact stock performance.

Source: [1] [Forget Bitcoin, a Nasdaq firm just picked Toncoin as its treasury asset](https://ambcrypto.com/forget-bitcoin-a-nasdaq-firm-just-picked-toncoin-as-its-treasury-asset/)