Nasdaq-listed Verb Technology completed a $558 million private placement to establish the first publicly traded company focused on holding Toncoin as a treasury reserve asset. The oversubscribed funding round positions the firm to rebrand as TON Strategy Co. and deploy most proceeds toward acquiring and staking TON tokens.
What to Know:
- Verb Technology raised $558 million from over 110 institutional and crypto investors including Pantera Capital, Kraken, and BitGo
- The company will rebrand as TON Strategy Co. and use funds primarily to acquire and stake Toncoin tokens
- New leadership includes TON Foundation President Manuel Stotz as chairman and former Morgan Stanley banker Veronika Kapustina as CEO
Institutional Interest Drives Oversubscribed Round
Kingsway Capital led the financing that attracted participation from more than 110 institutional and crypto-native investors. The investor roster included established names like Vy Capital, Blockchain.com, Pantera Capital, Ribbit Capital, Graticule, Animoca Brands, Kraken, and BitGo.
Individual investors also participated, including Ethena Labs founder Guy Young. The round was both upsized and oversubscribed, indicating strong market appetite for exposure to TON through a traditional equity structure.
Cohen & Company Capital Markets served as the sole placement agent for the transaction. Legal counsel came from Reed Smith, Perkins Coie, Morgan Lewis, and other firms.
New Leadership Takes Control
The restructured entity will operate under new management with deep crypto and traditional finance experience. TON Foundation President and Kingsway founder Manuel Stotz will chair the company, bringing over 15 years of global investment experience to the role.
Veronika Kapustina, a former senior advisor to the TON Foundation and ex-Morgan Stanley banker, will serve as chief executive officer. Sarah Olsen, previously Head of Corporate Development for JPMorgan's blockchain division Onyx, assumes the chief financial officer position.
Blockchain.com CEO Peter Smith will advise the firm as it scales crypto treasury operations. The leadership team combines traditional Wall Street expertise with native crypto experience.
TON's Telegram Integration Drives Appeal
The company's strategy centers on Toncoin's integration with Telegram's ecosystem and its Mini App platform. Telegram's user base exceeds 900 million globally, providing developers access to a large and active audience for blockchain-based applications.
This positioning influenced Verb's decision to focus treasury operations on TON rather than more established cryptocurrencies like Bitcoin or Ether. The firm believes TON's connection to Telegram's platform offers stronger adoption potential compared to standalone blockchain networks.
The development comes less than a month after reports indicated the Ton Foundation was seeking approximately $500 million to establish a TON treasury company. Verb's successful raise appears to fulfill that objective through a public market vehicle.
Crypto Treasury Model Explained
Verb's new direction combines long-term digital asset holdings with cash flow generation through staking rewards. Staking involves locking tokens in a blockchain network to support operations and earn additional tokens as compensation.
This model differs from traditional corporate treasury management, which typically focuses on cash and short-term securities. Instead, the company plans to hold volatile digital assets that could appreciate significantly but also face substantial price declines. The strategy requires shareholders to accept cryptocurrency market risks in exchange for potential exposure to blockchain network growth. TON tokens currently trade on major exchanges and support various decentralized applications within the Telegram ecosystem.
Existing Operations Continue
While pivoting to digital asset reserves, Verb will maintain its current social commerce businesses. These include MARKET.live, an AI-driven video shopping platform, and recently acquired livestream commerce startup LyveCom.
The dual approach allows the company to generate traditional business revenues while building cryptocurrency holdings. This structure provides some operational diversification as the firm transitions to its new treasury-focused model.
Management has not disclosed specific allocation targets between legacy operations and new crypto treasury activities. The $558 million raise suggests TON acquisitions will represent the majority of near-term capital deployment.
Conclusion
Verb Technology's successful $558 million raise establishes a new model for public market cryptocurrency exposure through corporate treasury strategies. The company's rebrand to TON Strategy Co. and experienced leadership team position it to capitalize on Telegram's blockchain integration while providing traditional investors access to TON token appreciation.