TON Foundation Partners with Kingsway to Raise $400M for Crypto Treasury

TLDR

Table of Contents

TON and Kingsway plan a $400M raise to fund a Toncoin treasury company.
The firm will likely go public via SPAC and PIPE funding rounds.
TON price rose 2 percent to $3.16 after the announcement.
Crypto treasury firms are expanding beyond Bitcoin into TON, ETH, XRP, and SOL.

The TON Foundation has announced plans to partner with Kingsway Capital Partners to create a new Toncoin treasury company. According to Bloomberg, the joint entity is set to raise up to $400 million from private investors.

The new company will be structured to buy and hold Toncoin as a primary asset. It is expected to be publicly listed. While specific launch details remain undisclosed, people familiar with the matter noted that the parties may pursue a SPAC route.

Funding Strategy Through PIPE

Sources close to the deal told Bloomberg that the funding will come via a private investment in public equity (PIPE). This strategy involves investors purchasing shares in the new entity at a discounted rate before the company lists publicly.

Kingsway Capital is expected to be a lead participant in the raise, helping anchor the funding round. The raised capital will be allocated exclusively toward Toncoin purchases.

Following the announcement, Toncoin (TON) recorded a slight price increase of 2%, reaching $3.16 at the time of writing. The market capitalization for Toncoin also moved higher to $7.68 billion.

However, Toncoin’s daily trading volume has dropped by 18% over the last 24 hours. This decline is in line with broader market caution, particularly as Ethereum leads a wider crypto pullback.

Crypto Treasury Model Gains Momentum

Crypto treasury companies are becoming more common as institutional interest in digital assets expands. Bitcoin leads the category, with MicroStrategy and Strategy maintaining large holdings.

Ethereum is also attracting treasury activity from firms such as SharpLink Gaming and BitMine. Solana has seen similar moves from DeFi Development Corp and Sol Strategies.

XRP and BNB are also gaining attention. Earlier today, Nature’s Miracle announced a new XRP treasury plan. BNB recently saw a price surge attributed to corporate accumulation trends.

TON Looks to Move Past Previous Controversy

This announcement comes after the TON Foundation faced criticism over a premature UAE Golden Visa program. The Foundation had offered a 10-year residency visa to users who staked $100,000 in TON for three years.

However, it was later revealed that the announcement lacked government support and was withdrawn. The Foundation has not commented further on the matter in the context of the current treasury announcement.

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