Verb Technology, a company listed on the Nasdaq, has successfully secured $558 million through a private funding initiative. The purpose of this capital raise is to establish the first publicly traded entity focused solely on holding Toncoin (TON) as a primary treasury reserve.
This funding round experienced strong demand, becoming both oversubscribed and expanded in size. Kingsway Capital spearheaded the investment, with participation from more than 110 different institutional investors and firms specializing in cryptocurrency.
Prominent participants in the funding included Vy Capital, Blockchain.com, Pantera Capital, Ribbit Capital, Graticule, Animoca Brands, Kraken, and BitGo. Individual investors such as Guy Young, the founder of Ethena Labs, also contributed.
The company intends to rebrand itself as TON Strategy Co. (TSC). A substantial portion of the newly acquired funds will be used to acquire and stake TON. Telegram, boasting a user base exceeding 900 million worldwide, has strategically integrated TON into its Mini App platform, providing developers access to a vast and engaged audience.
This development emerges shortly after reports indicated that the Ton Foundation was exploring raising half a billion dollars to create a TON treasury firm.
Strategic pivot
Verb’s updated business strategy centers on establishing a crypto-focused treasury structure. This model will combine holding digital assets for the long-term with generating revenue through staking rewards.
The company believes that the integration of Toncoin with Telegram creates substantial opportunity for widespread adoption, positioning it as a valuable choice for a reserve asset approach.
While shifting its emphasis to digital asset reserves, the company will continue its current social commerce activities. This includes maintaining its AI-powered video shopping platform, MARKET.live, and the recently acquired livestream commerce business, LyveCom.
Restructuring
The new organization will be led by Manuel Stotz, the founder of Kingsway and President of the TON Foundation, as Chairman. Stotz brings more than 15 years of experience in global investment.
Veronika Kapustina, previously a senior advisor to the TON Foundation and formerly with Morgan Stanley, will serve as the Chief Executive Officer. Sarah Olsen, who previously headed Corporate Development for JPMorgan’s blockchain division, Onyx, will assume the role of Chief Financial Officer.
Furthermore, Peter Smith, the CEO of Blockchain.com, will act as an advisor to the firm as it develops its crypto treasury operations.
Cohen & Company Capital Markets acted as the exclusive placement agent for the funding. Legal advice was provided by Reed Smith, Perkins Coie, Morgan Lewis, and other firms.