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- Verb Technology expects $558 million from an oversubscribed PIPE deal.
- It plans to rebrand as TON Strategy Co. and hold Toncoin as its main reserve.
- Over 110 investors backed the move, including Kingsway Capital and Blockchain.com.
Verb Technology Company is preparing for a major shift. It recently announced a private placement deal that is expected to raise around $558 million in gross proceeds. The deal involves the sale of about 58.7 million shares at $9.51 each. It was upsized and oversubscribed, showing strong investor interest. A key part of this strategy includes a focus on Toncoin (TON), as the company positions itself to build value around digital assets tied to real-world platforms.
The deal will be wrapped up by August 7, 2025. The funds will help Verb develop a fresh treasury strategy based on Toncoin, a budding cryptocurrency tied to Telegram. The firm will soon change its name to TON Strategy Co. That’s the very first occasion when a public firm has opted to adopt Toncoin as a main treasury reserve currency.
It reflects a broader trend of blockchain integration in mainstream finance. The company plans to buy a large share of Toncoin and earn yield through staking. This new reserve model aims to create positive cash flow while supporting Telegram’s blockchain, TON.
TON Strategy Co. Benefits from Telegram Link
Toncoin’s rise is closely linked to Telegram’s growing role in crypto. Telegram recently made TON the default blockchain for its mini apps and digital services. From advertisements to usernames and NFTs, Toncoin now powers the entire in-app economy.
Even Telegram’s app has an in-built wallet which has access to 87 million U.S. users and over a billion global users. That makes Toncoin potentially one of the most active cryptos within a real-world app.
This creates TON Strategy Co. with a powerful application use case within its existing holdings. Most cryptocurrencies lack a real application use case within a large-scale global app, but $TON does. The Telegram-TON Foundation agreement creates a doorway to increased adoption.
Kingsway and TON Foundation Align for Growth
The strategy is being led by Kingsway Capital. Manuel Stotz, its CEO, will become Executive Chairman of the combined firm. He has experience at Kingsway and at TON Foundation too. Blockchain.com CEO Peter Smith will also become a special advisor.
They combine extensive experience in institutional finance and digital assets. Over 110 investors participated in the PIPE offering. Prominent names include Vy Capital, Ribbit Capital, Graticule (GAMA), Animoca, Kraken, Pantera, and more. These investors endorse the firm’s decision to keep Toncoin as a strategic asset.
After its close, the company should have one of its best cash-to-asset ratios in non-BTC and ETH treasuries. Lock-up of as long as a year going to 36% of its shares signifies strong investor commitment. TON Strategy Co.’s intention remains to keep operating its initial business lines and focus its growth of its $TON holdings. Its stock will keep trading by its original symbol “VERB” as the transition is complete.
Related Reading: Bitcoin on the Edge: Will $113K Hold or Trigger a Breakdown?
