Nasdaq-listed Verb Technology enlists Kingsway Capital to initiate a treasury strategy centered on TON.
In a significant move for the cryptocurrency industry, Verb Technology Company (VERB) and Kingsway Capital have joined forces to establish TON Strategy Co. (TSC), a new treasury strategy company focused on Toncoin ($TON), the native cryptocurrency of The Open Network blockchain. The partnership aims to create the first publicly traded treasury reserve of Toncoin, with an exclusive partnership with Telegram, a platform boasting over one billion monthly active users [1][4][5].
The private placement, led by Verb Technology Company, attracted participation from over 110 institutional and crypto-native investors, including Kingsway Capital, Vy Capital, Blockchain.com, Ribbit Capital, and Graticule [1][2][3][4][5]. The funds raised will primarily be used to acquire Toncoin, with the goal of holding one of the largest TON positions globally, representing about 5% of TON’s circulating supply [4].
Manuel Stotz, Founder & CEO of Kingsway Capital and President of the TON Foundation, will lead the new company as Executive Chairman [1][2][3][4][5]. Veronika Kapustina and Sarah Olsen will serve as CEO and CFO, respectively, with Peter Smith, CEO of Blockchain.com, serving as Special Advisor [3]. Approximately 36% of the company's share capital is locked up for 6 to 12 months as part of the deal terms [4].
The transaction, which is expected to close on August 7, subject to customary closing conditions, is an oversized and oversubscribed one, highlighting strong market interest [1][2][4][5]. The initiative leverages extensive crypto and institutional expertise to strategically grow and manage a treasury reserve in TON cryptocurrency.
Manuel Stotz expressed his belief that permanent capital vehicles are suitable for long-term holdings of Toncoin, which has the potential to compound in value and offers staking yield. He also stated that Telegram is the preferred messenger for the growing global crypto community, and $TON is the currency that powers the Telegram ecosystem [1][2][3][4][5].
Peter Smith, CEO & Co-Founder of Blockchain.com, commented that the TON ecosystem marks a major step in global crypto adoption. He believes that the new leadership team's combined crypto and institutional expertise will foster blockchain innovation [1][2][3][4][5].
The announcement was made in a press release, and the transaction is subject to customary closing conditions.
[1] Press Release: Verb Technology Company Announces $558 Million PIPE Transaction with TON Strategy Co. (TSC) [2] CoinDesk: Verb Technology Company to Raise $558 Million for TON-Focused Treasury Strategy Company [3] Bloomberg: Verb Technology Company Partners with Kingsway Capital to Create TON-Focused Treasury Strategy Company [4] The Block: Verb Technology Company Announces $558 Million Private Placement for TON-Focused Treasury Strategy Company [5] Yahoo Finance: Verb Technology Company Forms TON Strategy Co. to Create First Publicly Traded Treasury Reserve of Toncoin
The partnership between Verb Technology Company and Kingsway Capital forms TON Strategy Co. (TSC), intending to create the first publicly traded treasury reserve of Toncoin, a cryptocurrency powered by the Telegram platform with over one billion monthly active users. The initiative, leveraging extensive crypto and institutional expertise, aims to strategically grow and manage a treasury reserve in TON cryptocurrency, which Manuel Stotz, the Founder & CEO of Kingsway Capital, believes has the potential for long-term growth due to its staking yield and potential for compounding value.
