TLDR
- Verb Technology raised $558M via PIPE to launch the first public Toncoin (TON) treasury.
- VERB stock surged 100% in premarket trading after announcing its TON-focused treasury strategy.
- Verb will hold about 5% of Toncoin’s circulating supply after the transaction closes on August 7.
Verb Technology, a Nasdaq-listed company, has announced a $558 million private placement to support the launch of a TON-based treasury. The company also plans to rebrand as TON Strategy Co. This news caused VERB shares to jump 100% in premarket trading, attracting attention from both institutional investors and the crypto market.
$558 Million Private Placement and Strategic Rebrand
Verb Technology confirmed it will raise $558 million through a private placement deal involving about 58.7 million common shares priced at $9.51 each. The deal is expected to close on or around August 7, subject to standard closing conditions. This private investment in public equity (PIPE) is led by Kingsway Capital and supported by over 110 institutional and crypto-native investors.
Participants in the round include Vy Capital, Blockchain.com, Ribbit Capital, and Graticule. The company announced that the proceeds from this placement will be used to acquire Toncoin (TON), the native token of The Open Network. Following the transaction, Verb will rebrand as TON Strategy Co., becoming the first publicly listed company to hold Toncoin as its core reserve asset.
🔥NEW: Verb Technology announces $558 million private placement to launch first publicly listed $TON treasury strategy company pic.twitter.com/ArAF6W3Kt3
— Crypto Briefing (@Crypto_Briefing) August 4, 2025
The company’s plan includes holding a large quantity of TON, representing around 5% of the current circulating supply. Verb will also implement a lock-up structure, where 36% of its share capital will be held for 6 to 12 months by select investors and insiders.
New Leadership and Treasury Growth Plans
The post-deal structure of TON Strategy Co. will include a refreshed executive team. Manuel Stotz will serve as Executive Chairman. The company states that the new team brings experience from both institutional finance and the crypto sector, which it believes will support its long-term treasury goals.
TON Strategy Co. aims to generate long-term cash flow by staking its Toncoin holdings. The company believes this will enable it to maintain a self-sustaining treasury model. According to its statement, staking rewards from the TON network will form a key part of the firm’s future operating model. Verb has not disclosed how much Toncoin it will purchase initially, but stated the token will serve as its primary reserve asset.
The company also announced that the treasury structure is designed to be cash flow positive over time. It is positioning itself as a reserve holder rather than an operator of blockchain infrastructure or trading entity.
Market Reaction and TON Price Movement
Following the announcement, VERB stock surged in premarket trading, rising as much as 100% before settling near $15 per share. This reflects a gain of over 50% from its previous close. Over the past month, VERB stock has increased by more than 38% and is up over 45% year-to-date.
Data from TradingView shows that investor interest spiked immediately after the announcement. This followed reports earlier in the year that the TON Foundation and Kingsway Capital had plans to raise up to $400 million for a similar initiative. The expanded size of the final deal has caught market attention.
Meanwhile, Toncoin saw a price decline of more than 6% in the 24 hours following the news. The altcoin is currently trading near $3.45, with a market cap of around $8.35 billion, based on CoinMarketCap data. On August 2, TON rose over 7%, despite broader market weakness, suggesting that some of the recent news may have already been reflected in its price.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
