Verb Tech Secures $558M for Toncoin Treasury Strategy
Verb Technology Launches $558M Toncoin Treasury Strategy
Verb Technology Company, a Nasdaq-listed firm focused on e-commerce and healthcare, has secured $558 million in gross proceeds through a private placement (PIPE). This funding will be used to implement a Toncoin (TON) treasury strategy, according to a recent announcement.
The transaction, expected to close around August 7, will see Verb Technology rebrand as TON Strategy Co. (TSC). TSC will become the first publicly traded treasury reserve of Toncoin, the native crypto asset of The Open Network blockchain.
Key Takeaways:
- Verb Technology raised $558 million to establish a public treasury reserve of Toncoin.
- The company will rebrand as TON Strategy Co. (TSC)
- The majority of the net proceeds will be allocated to TON
- TON powers Telegram’s crypto ecosystem and offers staking rewards to treasury holders.
Manuel Stotz, incoming Executive Chairman, stated that permanent capital vehicles are suitable for long-term holdings of TON, citing its potential for value appreciation and staking yield.
Following the close, Verb intends to allocate the majority of net proceeds to TON, estimating holdings of roughly 5% of Toncoin’s circulating market value.
The company plans to generate sustainable staking rewards, aiming to create a cash flow positive treasury model centered around TON.
More than 110 institutional and crypto-native investors back Verb’s transformation. Kingsway Capital led the PIPE, with participation from firms like Vy Capital, Blockchain.com, Ribbit Capital, and Graticule (GAMA). Other backers include Pantera, CMCC Global, Kraken, Animoca, ParaFi, and BitGo.
Verb’s existing business operations, including its AI-powered livestream shopping platform MARKET.live and LyveCom, will continue and are expected to grow despite the strategic shift.
Peter Smith, CEO & Co-Founder of Blockchain.com and incoming Special Advisor, noted that the TON ecosystem marks a major step in global crypto adoption.
TradingView data indicates that the price of TON experienced a roughly 5% drop following the news, amid a broader sell-off in the crypto market.