Verb Technology has announced plans to create the first public Toncoin treasury with a fundraising goal of $558 million, marking its active transition into the cryptocurrency space.
Transition to TON Strategy and Crypto
Nasdaq-listed Verb Technology plans to change its business direction completely, focusing on blockchain finance. As part of a rebranding, the company will be known as TON Strategy Co. This change reflects Verb's full commitment to adopting Toncoin as its main treasury asset.
Verb to Become First Public Toncoin Holder
As part of the funding, Verb announced it has entered into a Private Investment in Public Equity (PIPE) transaction with accredited and institutional investors. The agreement includes the purchase of nearly 58.7 million shares of common stock at $9.51 each, securing $558 million in gross proceeds for the company. These funds will be used to build a strong Toncoin treasury and potentially to earn rewards through staking.
Market Reaction to Verb's News
The announcement of the Toncoin treasury created a swift reaction in the stock market. Verb's share price surged by as much as 100%, although it later pulled back to around $15 in premarket trading. Meanwhile, the price of Toncoin fell by 7.5%, currently trading at $3.38, indicating that the market may have reacted to the news before its official announcement.
Overall, Verb Technology's strategy involving investment in Toncoin highlights the growing influence of cryptocurrencies on public companies. This may lead to significant changes in their business models and impact the stock market.
