An official press release published today details Verb Technology's purchase of TON for a value of $713, as well as $67 million in cash, which can be used for additional treasury asset purchases.
The announcement comes after the closure of a private placement of 558 million dollars by the company on August 8. More than 110 institutional investors and crypto assets participated in the offering. Most of the proceeds will go to the treasury of TON, which will now serve as the main reserve asset of Verb.
The company's management has set an ambitious goal. Verb aims to capture more than 5% of the total Toncoin in circulation. This move would make the company one of the most influential holders of the native token of The Open Network, TON. It also seeks to increase its holdings of Toncoin per share through reinvestment of cash flows, staking rewards, and moderate use of capital markets.
By becoming the first publicly traded treasury reserve of TON, the company seeks to strengthen the economic foundation of the blockchain, rather than simply holding tokens on its balance sheet. Manuel Stotz, CEO of Verb Technology, echoed the recent purchase of Toncoin, stating:
"Exceeding $780 million in assets just days after our private placement reflects the conviction behind $TON... This is more than building a balance sheet; it's about contributing to the security of the TON blockchain, where participants can build, transact, and directly benefit from the underlying financial protocols."
Verb Technology's recent acquisition could drive a short-term price rebound, as it demonstrates strong confidence in the currency. Often, institutional demand serves as a source of price stability or even rebound. With the currency's momentum shift, the price of Toncoin could approach resistance above $3.30.
While the acquisition shows long-term optimism regarding the fundamentals of TON, investors will be watching to see if the move will stimulate stronger adoption of Toncoin, as well as a price rebound.
