• Verb Technology raises $558 million to create the first public Toncoin treasury on Nasdaq.

  • The company will rebrand to TON Strategy and shift its focus to Toncoin as its main reserve asset.

  • VERB stock jumped over 50% after the Toncoin treasury announcement and investor backing.

Verb Technology, listed on Nasdaq, is transitioning into a crypto treasury firm. The company announced a $558 million private placement. This deal is part of its plan to launch the first publicly traded Toncoin (TON) treasury. It also intends to rebrand as TON Strategy Co. after closing the transaction around August 7.

https://twitter.com/BSCNews/status/1952578216377389507

The funding will support the acquisition of Toncoin as its main reserve asset. Verb will use the capital to stake TON and earn returns. The move positions the firm as one of the largest institutional holders of Toncoin globally. It will also be the first public company to hold TON in this capacity.

Partnership and Funding Details

Verb’s plan is backed by Kingsway Capital and over 110 institutional investors. Participants include Blockchain.com and Ribbit Capital. The company entered into a PIPE agreement, selling nearly 58.7 million shares at $9.51 each. The transaction is subject to typical closing conditions.

Once finalized, Verb will dedicate most proceeds to Toncoin acquisition. The company aims to build a long-term crypto reserve. The strategy includes staking TON to generate sustainable rewards. This marks a full departure from Verb’s previous role in livestream commerce.

Market Reaction and Stock Movement

Following the announcement, VERB stock surged by 100% in early trading. It later adjusted but remained over 50% up at $15 per share. Over the past month, shares rose 38%, and 45% year-to-date. Investors responded positively to the crypto-focused strategy.

Toncoin’s market price dropped 6% following the news. It currently trades around $3.45, with a market cap near $8.35 billion. Despite the dip, TON gained over 7% on August 2, before the official announcement. This indicates that markets may have anticipated the news earlier.

Leadership Overhaul and Strategic Pivot

The leadership team is also changing as Verb rebrands. Incoming Executive Chairman Manuel Stotz leads the new direction. He is the founder of Kingsway Capital and President of the TON Foundation. Veronika Kapustina will become CEO, bringing experience from Morgan Stanley and the TON Foundation.

Sarah Olsen, formerly with JP Morgan’s Onyx division, will serve as CFO. Blockchain.com CEO Peter Smith joins as a strategic advisor. This team aims to guide the firm’s transformation into a long-term Toncoin investment vehicle.

Verb Technology’s pivot aligns with recent Telegram developments. TON has become the blockchain partner for Telegram’s ad and digital asset ecosystem. The TON Wallet is now integrated into the app, expanding access and functionality for users and investors.