Verb Technology is making a major leap into crypto by raising $558 million to build the first publicly listed Toncoin treasury. The firm will rebrand as TON Strategy and reshape its leadership and reserves.
The Nasdaq-listed firm disclosed the bold transformation in a press statement today. The company aims to pivot from its current business model to focus heavily on crypto asset reserves.
Major Capital Raise and Strategic Backers
As part of this shift, the company announced it secured $558 million through a private placement deal that exceeded expectations. The raise drew participation from more than 110 accredited and institutional investors.
The financing was structured through a PIPE (Private Investment in Public Equity) deal. This enabled select investors to purchase nearly 58.7 million shares at $9.51 each, raising over half a billion dollars. Notably, the transaction is scheduled to close around August 7, pending final approvals.
Kingsway Capital led the funding round, with support from high-profile firms such as Vy Capital, Blockchain.com, Ribbit Capital, and Graticule. Notably, Kingsway had previously partnered with the TON Foundation to raise up to $400 million for a similar Toncoin-focused treasury initiative.
Once finalized, most of the new capital will be used to purchase Toncoin, the native token of The Open Network (TON). The company aims to acquire roughly 5% of TON’s circulating supply, which would make it one of the largest holders globally.
Revenue Strategy: Staking Toncoin for Growth
TON Strategy plans to stake its Toncoin holdings to generate passive income, aiming to establish a treasury that is not only self-sustaining but also cash-flow positive. This model is designed to reduce reliance on external funding while deepening the company’s integration with the TON blockchain.
New Executive Team to Lead Crypto Transition
To support this shift, the company is bringing in new leadership with deep experience in crypto and finance.
Manuel Stotz, founder of Kingsway Capital and President of the TON Foundation, will take on the role of Executive Chairman. Veronika Kapustina, who previously advised the TON Foundation, will become the Chief Executive Officer.
Sarah Olsen, co-founder of Europa Partners, has been appointed Chief Financial Officer. Peter Smith, CEO & Co-Founder of Blockchain.com, will join as Special Advisor.
The new team is expected to drive the company’s crypto-first strategy forward.
Legacy Businesses to Remain
Despite the strategic overhaul, Verb’s existing operations, including its AI-powered livestream shopping platform, MARKET.live, and LyveCom, a recent acquisition, will continue. The company confirmed plans to expand these services in parallel with its crypto initiatives.
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