Verb Completes $558M Raise to Rebrand as TON Treasury Vehicle

Verb Technology, a Nasdaq-listed firm formerly focused on social commerce, has completed a $558 million private placement, marking its transformation into the first publicly traded TON treasury vehicle and rebranding to TON Strategy Co. (TSC). The move positions the company as a key institutional holder and staker of Toncoin (TON), in partnership with Kingsway Capital, a major player in the Telegram Open Network ecosystem. The transaction, which includes shares sold to over 110 institutional and accredited investors at $9.51 per share, will see Verb deploy the majority of proceeds to acquire TON as its primary treasury reserve asset. The company aims to generate recurring staking rewards while maintaining a long-term, cash-flow-positive position in the token [1].

The rebrand is expected to be finalized by August 7, following which TSC will begin staking its TON holdings, further aligning with the growing Telegram ecosystem. Telegram, which has over 1 billion monthly active users, has designated TON as the exclusive blockchain for in-app transactions, including digital asset purchases, advertising, and NFTs. This integration has significantly increased the visibility and potential utility of TON, making it an attractive asset for institutional investment [2].

Manuel Stotz, the incoming Executive Chairman of TSC and founder of Kingsway Capital, emphasized the strategic alignment with TON, stating that the token has the potential to compound in value while offering staking yield. Stotz also highlighted TSC's vision as a long-term institutional-grade operator of TON treasury assets, aiming to capitalize on the expanding blockchain ecosystem [3].

The leadership team includes Veronika Kapustina, previously of the TON Foundation and Morgan Stanley, who will serve as CEO, and Sarah Olsen, former Head of Corporate Development at Onyx by JPMorgan, who will lead as CFO. Peter Smith, CEO of Blockchain.com, will act as a special advisor, underscoring the company’s commitment to blending institutional experience with deep knowledge of the TON ecosystem [4].

The transition has already driven a significant market reaction. Following the announcement, Verb’s stock surged by nearly 100%, reflecting investor optimism about the company’s new direction. Post-close, the company expects 36% of its share capital to be locked for six to twelve months, with a cash-assets-to-total-assets ratio of 77%. Additionally, the initial cash position is expected to be roughly 5% of TON’s circulating market value [5].

This move highlights the growing institutional interest in TON, particularly as Telegram continues to expand its integration with the blockchain. By leveraging its public listing and institutional-grade operations, TSC aims to become a central figure in the TON ecosystem while offering investors exposure to a rapidly evolving digital asset environment [6].

Source:

[1] Verb Technology (url: https://www.stocktitan.net/news/VERB/verb-technology-company-nasdaq-verb-announces-approximately-558-ubmk3cseuosg.html)

[2] AInvest (url: https://www.ainvest.com/news/verb-technology-rebrands-ton-strategy-558m-toncoin-treasury-pivot-2508/)

[3] CryptoRank (url: https://cryptorank.io/news/feed/6066f-verb-secures-558m-to-become-first-ton-treasury-vehicle-plans-ton-strategy-rebrand)

[4] Cryptonews (url: https://cryptonews.com/news/verb-raises-558m-ton-treasury-shares-surge/)

[5] Crypto (url: https://crypto.news/verb-technology-locks-558m-for-toncoin-treasury-verb-stock-rockets-higher/)

[6] CoinCentral (url: https://coincentral.com/verb-technology-verb-stock-surges-90-on-558m-toncoin-treasury-pivot-and-rebrand/)