The TON Foundation, in collaboration with Kingsway Capital, is seeking to raise $400 million to launch a publicly traded crypto treasury company focused on Toncoin.
According to Bloomberg, the new company is intended to be publicly listed, with a SPAC (Special Purpose Acquisition Company) route under active consideration. The planned capital raise will be structured as a private investment in public equity (PIPE).
This mechanism enables selected investors to acquire shares at a discounted price ahead of the company’s public debut. This approach has become increasingly popular among crypto ventures. It gives them access to traditional capital markets while bypassing the lengthy IPO process.
Leadership Ties and Strategic Players
Manuel Stotz, who leads Kingsway Capital and also serves as president of the TON Foundation, is believed to be a central figure in the initiative. While neither Stotz nor the involved organizations have publicly confirmed the deal, insiders suggest that Kingsway could be among the early investors in the proposed entity.
Cohen & Co., a financial services firm known for its work in crypto-related mergers, is reportedly advising the formation of the new company. The firm previously provided advisory services to Dynamix in connection with a $1.5 billion Ethereum-focused SPAC transaction.
Meanwhile, Cantor Fitzgerald is reportedly exploring the creation of other Toncoin-related public entities, reflecting rising institutional appetite for crypto treasuries.
Toncoin Market Reaction and Status
Toncoin, the native token of the Telegram Open Network (TON) blockchain, responded modestly to the news. Its price rose 1.08% to $3.13. However, daily trading volume fell 16.12%, reflecting weakness across the broader crypto market, driven in part by Ethereum pullbacks.
Currently, Toncoin ranks as the 21st-largest cryptocurrency, with a market capitalization approaching $8 billion.
Crypto Treasuries: A Rising Trend
The move by TON and Kingsway taps into a growing trend of institutional crypto adoption through publicly listed treasury firms. Bitcoin remains the flagship asset in this space, with companies like MicroStrategy holding significant reserves.
Other blockchains are also seeing similar interest. Ethereum treasuries have emerged through firms such as SharpLink Gaming and BitMine. Meanwhile, Solana, XRP, and BNB have also gained traction. Just today, Nature’s Miracle announced a new treasury initiative built around XRP holdings.
Ultimately, this latest announcement could signal a reputational reset for the TON Foundation, which recently came under fire for promoting a now-retracted UAE Golden Visa program.
The program promised a 10-year residency to users who staked $100,000 in TON. However, the offer was ultimately scrapped after it was revealed to lack government approval. Meanwhile, the Foundation has remained silent on the matter since.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
