Nasdaq-listed Verb Technology is the latest company to join the crypto treasury trend, announcing plans to launch the first publicly listed TON treasury. As part of this move, Verb plans to raise $558 million and also rebrand to “TON Strategy.”
Verb Technology To Launch TON Treasury, Rebrand To TON Strategy
In a press release, the company announced the pricing of an upsized and oversubscribed $558 million private placement as part of plans to implement a TON treasury strategy. Verb Technology also expects to rebrand as TON Strategy Co. and become the first publicly traded treasury reserve of Toncoin, which is the native token of The Open Network (TON).
The company further revealed that it is executing this plan in partnership with Kingsway Capital. This follows an earlier report that the TON Foundation and Kingsway were raising up to $400 million for a treasury company of this kind.
As part of the deal, Verb Technology has already entered into a PIPE transaction with institutional and accredited investors for the purchase and sale of almost 58.7 million shares of common stock at a purchase price of $9.51 per share. This amounts to the gross proceeds of approximately $558 million.
The company intends to close this transaction on or around August 7, subject to customary closing conditions. Once that is done, it plans to use the majority of the net proceeds to acquire Toncoin and launch the TON treasury. The altcoin will serve as Verb’s primary treasury reserve asset.
This will position the company as one of the largest TON holders globally and enable it to generate sustainable staking rewards to grow its treasury in a “cash flow positive manner.”
VERB Stock Jumps As Much As 100%
TradingView data shows that the VERB stock jumped as much as 100% following the TON treasury announcement. The stock has since pared some of these gains, trading at around $15, still up over 50% in premarket trading.
The stock is also up over 38% in the last month and over 45% year-to-date (YTD). This stock surge again underscores the boost that crypto exposure provides for these treasury companies.
Meanwhile, the TON price is down over 6% in the last 24 hours, amid the TON treasury announcement. CoinMarketCap data shows that the altcoin is currently trading at around $3.45, with a market cap of $8.35 billion.
Notably, TON surged over 7% on August 2, while the broader crypto market witnessed a significant decline. As such, there is the possibility that this news was already priced in.
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Boluwatife Adeyemi
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