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The Open Network's (TON) native token has plummeted by 7.9% following an announcement from Nasdaq-listed company Verb Technology. The company plans to become the first publicly traded entity to hold the coin as a primary reserve asset.

At the time of writing, TON is trading at $3.4, with a market cap of $8.1 billion, according to CoinGecko.

According to a press release, Verb Technology will rebrand to TON Strategy and raise $558 million through a private placement. The majority of the funds will be used to purchase TON and generate staking rewards.

The investment round was led by Kingsway Capital, with participation from industry players like Blockchain.com, Vy Capital, Ribbit Capital, Graticule, Pantera, ParaFi, and Animoca Brands.

The planned TON assets will constitute about 5% of the circulating supply's market value. However, the company will keep 77% of the raised capital in cash reserves.

Kingsway Capital's head and TON Foundation President, Manuel Stotz, will become the Executive Chairman. Blockchain.com CEO Peter Smith will join as a special advisor. Veronica Kapustina, a former TON Foundation advisor, will assume the CEO role, while Sarah Olsen from JPMorgan will be the CFO.