Verb Rises 100% After $558M TON Treasury Deal

Verb Technology Company (NASDAQ: VERB) has raised $558 million through a private investment in public equity (PIPE) deal to establish the first publicly traded TON treasury, marking a dramatic strategic shift from its previous social commerce focus [1]. The oversubscribed offering was led by Kingsway Capital and supported by over 110 institutional investors, including Blockchain.com and Ribbit Capital [1]. The company will rebrand as TON Strategy Co. and use the proceeds to acquire Toncoin (TON), the native token of The Open Network, becoming one of the largest corporate holders of the asset [1].

This transformation signals a growing institutional interest in TON, which is being integrated as the core blockchain infrastructure for Telegram's ecosystem, including its wallet, mini-apps, and in-app transactions [1]. Telegram’s billion-user base gives TON substantial real-world utility, reinforcing its potential for long-term adoption. The investment is expected to reduce TON’s circulating supply by approximately 5%, potentially increasing upward price pressure [1]. Additionally, 77% of the capital raised will be held in reserve, providing liquidity support and the capacity to absorb volatility [1].

Manuel Stotz, incoming Executive Chairman and founder of Kingsway Capital, highlighted TON’s dual appeal as a long-term investment and yield-generating asset, with plans to stake the token to produce compounding returns [1]. Stotz will lead the new executive team alongside Veronika Kapustina as incoming CEO and Sarah Olsen as CFO [1]. The deal, anticipated to close by August 7, will lock up 36% of Verb’s share capital and establish one of the largest TON holdings globally [6]. However, 12 months of lock-up on a large portion of the company’s shares means the full impact on the TON price will remain speculative until the treasury begins to act [1].

Verb’s stock price surged 100% following the announcement, reflecting investor approval of the new strategy [1]. Nonetheless, TON’s price dipped over 6% in the 24 hours after the news, suggesting short-term uncertainty [2]. On the technical front, the TON/USD pair has shown bullish signs, including a recent move above the Bollinger Band midline and a clean uptrend lasting over two weeks [1]. The Heikin Ashi chart also indicates a trend shift since mid-July, coinciding with whale activity ahead of the public announcement [1]. The price currently sits above both the 20-day simple moving average and the lower Bollinger Band, maintaining an intact bullish structure [1].

Analysts suggest that TON could face a short-term consolidation or pullback between $3.30 and $3.55 as the market processes the news [1]. However, unless the price breaks below $3.20 on strong volume, the bullish trend is likely to persist [1]. A significant dip before treasury buying begins could present an opportunity for front-runners, as smart money often exploits temporary volatility in anticipation of long-term price movement [1]. If the treasury starts acquiring and staking TON post-August 7, further upward momentum toward the $3.90 to $4.20 Fibonacci extension levels—and potentially even $4.5—could follow [1].

Longer-term, the integration of TON into Telegram’s ecosystem may fundamentally change the token’s valuation floor [1]. With institutional backing, Telegram-driven adoption, and native staking yields, TON is transitioning from a speculative asset to one with tangible infrastructure and utility [1]. The $558 million war chest, now aimed directly at TON, reinforces the company’s long-term commitment to the ecosystem. If executed as planned, the rebrand and capital deployment could position TON among the few tokens with substantial institutional support and real-world use cases [1].

Sources:

[1] https://crypto.news/verb-technology-locks-558m-for-toncoin-treasury-verb-stock-rockets-higher/

[2] https://coingape.com/nasdaq-listed-verb-announces-558m-ton-treasury-verb-stock-jumps-100/

[5] https://www.quiverquant.com/news/Verb+Technology+Company+Inc.+Announces+Oversubscribed+PIPE+Transaction+to+Establish+First+Public+Treasury+Reserve+of+Toncoin

[6] https://www.stocktitan.net/news/VERB/verb-technology-company-nasdaq-verb-announces-approximately-558-ubmk3cseuosg.html