Ton Foundation Reportedly Seeking $400M for Public Treasury to Accumulate Toncoin

The TON Foundation and Kingsway Capital Partners are reportedly seeking to raise at least $400 million for a public treasury company designed to accumulate Toncoin, according to a report citing individuals familiar with the matter [1]. The proposed structure would utilize a private investment in public equity (PIPE) framework, where a publicly traded entity issues shares to a select group of investors. Kingsway, which is led by Manuel Stotz—a dual-role executive serving as both the firm’s president and the TON Foundation’s leader—could become one of the investors in the initiative. However, neither Stotz, Kingsway, nor the TON Foundation have publicly confirmed the details, and attempts to secure comment from these entities were unsuccessful.

The TON blockchain, which underpins the Toncoin (TON) token, is currently the 27th-largest cryptocurrency by market capitalization, valued at nearly $8 billion. Despite a broader crypto market rebound since April, TON has underperformed, experiencing a 23% decline to $3.17 as of the report’s publication. However, the token has posted a 9% gain in July, a positive trend despite ongoing scrutiny. This includes allegations that the TON Foundation offered golden visas in the United Arab Emirates (UAE) in exchange for Toncoin investments. The UAE has denied any formal involvement, and the TON Foundation clarified that the initiative was a pilot project conducted with a licensed partner, with no official government agreement [1].

The proposed treasury company is part of a broader trend in the crypto industry inspired by the success of Michael Saylor’s MicroStrategy, whose stock surged over 3,400% in five years through Bitcoin holdings. Financial firms such as Cohen & Co. and Cantor Fitzgerald are reportedly involved in the effort. Cohen & Co. previously advised Dynamix in a $1.5 billion blank-check deal for an Ethereum-focused treasury company, while Cantor has supported multiple high-profile crypto treasury ventures in recent months. These moves highlight growing institutional interest in crypto-backed public companies, a model that blends traditional finance with blockchain innovation.

The TON Foundation’s plan underscores the evolving strategies of blockchain projects to enhance token utility and market stability. By creating a public treasury, the foundation aims to centralize Toncoin holdings, potentially influencing supply dynamics and investor confidence. However, the lack of official statements from key stakeholders raises questions about transparency and execution risks. The project’s success will depend on factors such as regulatory clarity, market conditions, and the ability to differentiate itself from existing crypto treasury models.

Source: [1] [title1Ton Foundation seeking $400M to setup public treasury company to accumulate Toncoin] [url1https://cryptoslate.com/ton-foundation-seeking-400m-to-setup-public-treasury-company-to-accumulate-toncoin/]