Verb Technology Announces $558 Million PIPE Financing
On August 4, Verb Technology, a publicly listed company on the US stock market, announced that it has reached a private equity financing (PIPE) agreement with several institutional investors, expecting to raise $558 million, which will be used to invest in the native cryptocurrency $TON of the public blockchain TON.
(Background: Bitcoin Reserve Company: Why spend $2 to buy $1 of BTC?)
(Context: Trader Eugene: Corporate Reserve Cryptocurrency may be the “last wave opportunity” for altcoins)
New Member Joins Cryptocurrency Reserve Company!
On August 4, Verb Technology, a publicly listed company on the US stock market, announced that it has reached a private equity financing (PIPE) agreement with several institutional investors, expecting to raise $558 million, which will be used to invest in the native cryptocurrency $TON of the public blockchain TON.
The announcement stated that this transaction is expected to be completed on August 7, and on the same day, Verb Technology will officially change its name to TON Strategy Co. (TSC). Additionally, after using the raised funds to purchase TON tokens, the company will also stake its holdings in TON to generate more cash revenue.
Traditional Capital Meets Crypto Funds, Luxury Management Team in Place
The announcement further indicated that this PIPE financing attracted over 110 institutional investors, led by Kingsway Capital, with other investors including Vy Capital, Blockchain.com, CMCC Global, Pantera, MEXC Ventures, ParaFi Capital, Luxor Capital, Arrington Capital, Animoca, Kraken, BitGo, FalconX, Orbs Group, and The Open Platform.
At the same time, Kingsway founder Manuel Stotz will serve as the Executive Chairman of TSC; former senior advisor of the TON Foundation, Veronika Kapustina, will take on the role of CEO; and Sarah Olsen, former head of development at JPMorgan Onyx, will serve as CFO. Peter Smith, co-founder of Blockchain.com, will act as a special advisor. The management team spans finance, technology, and blockchain, viewed as a dual guarantee for TSC’s compliance and operations.
Manuel Stotz emphasized:
“Telegram is the preferred communication tool for the rapidly growing global crypto community, and $TON is the currency driving the Telegram ecosystem. In my view, permanent capital tools are particularly suitable for long-term holdings of $TON, as they not only have appreciation potential but also provide staking yields, meaning TSC can benefit from staking rewards.”
Telegram’s Millions of Users Drive TON Ecosystem Explosion
While major cryptocurrency reserve companies are focusing their attention and funds on Bitcoin and Ethereum, why did Verb choose TON? The company explained in the announcement that Verb values TON’s core advantage, which lies in its deep integration with Telegram.
With over one billion monthly active users on Telegram, approximately 87 million of whom are in the United States, users can directly send and receive TON within the chat interface, purchase username NFTs, and pay for Telegram ads using TON. For developers, TON is the only authorized blockchain for Mini Apps, forming what can be described as a monopolistic entry-level advantage.
However, at present, “cryptocurrency reserve stocks” packaged in the public market provide institutions with a legitimate new tool to hold digital assets. Regardless of whether it is Bitcoin Reserve Company, Ethereum Reserve Company, or TON Reserve Company, they still face significant challenges, such as the severe volatility of the crypto market and the lack of unified regulations across countries. If the growth rate of the TON ecosystem does not meet expectations, TSC’s asset portfolio will also face valuation pressure.
Verb Technology’s Stock Soars
Following this news, Verb Technology’s stock (VERB) quickly surged after the US stock market opened on August 4. As of the time of writing, VERB was reported at $14.97 during trading, with an intraday increase of up to 55%, raising its market capitalization to $20.87 million.
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