In Brief: Verb Technology Rebrands to TON Strategy amid Toncoin Acquisition Plans
Verb Technology announced its rebranding to TON Strategy on Monday. The company plans to use proceeds from a $558 million private placement (PIPE) to accumulate and stake Toncoin.
Toncoin’s price experienced a significant drop (6.9%) after the announcement, however, the cryptocurrency saw a 24% increase over the past month.
The stock price of Verb Technology (now TON Strategy) surged 140% on Monday to $22.68 following the disclosure of the planned financing.
Ton Strategy cited Telegram-linked The Open Network (TON) as influence but emphasized Toncoin is distinct from Telegram itself. The purchase of Toncoin positions it as the company’s “primary treasury reserve asset.”
Ton Strategy expects the PIPE transaction to close Thursday. Kingsway Capital founder Manuel Stotz will become the company’s executive chairman. This follows recent leadership changes scheduled for after the funding completion.
The deal involves the sale of 59 million common shares at $9.51. The company’s stock reacted strongly positive on Monday, while the actual Toncoin cryptocurrency price reacted negatively.
Toncoin ranks as the 27th largest cryptocurrency by market capitalization according to CoinGecko, valued at $8.2 billion. TON Strategy aims to amass significant holdings to secure staking opportunities and value appreciation.
This move expands the crypto treasury sector, following historically strong performances by similar entities. The effectiveness of the strategy will be subject to SEC review of the PIPE filing and market reaction.
