Verb Technology Announces $558 Million Funding Round
Verb Technology (Nasdaq: VERB) announced it has secured approximately $558 million in a private funding round to build a Toncoin ($TON) treasury. The company will rebrand as TON Strategy Co. (TSC) and shift its focus to becoming the first publicly listed firm to use Toncoin as a primary reserve asset.
The company raised the funds through a PIPE deal — private investment in public equity — with institutional and accredited investors. It sold about 58.7 million shares and pre-funded warrants at $9.51 per unit, matching VERB’s closing price on Aug. 1. The deal is expected to close around Aug. 7.
Verb plans to allocate most of the capital to purchasing Toncoin and earning rewards through staking. It will continue operating its AI-driven video commerce platform, with plans to expand its tech business alongside the new strategy.
TON Powers Telegram’s Blockchain Shift
Telegram continues pushing forward with its blockchain integration, with Toncoin playing a central role. The TON Foundation and Telegram confirmed that $TON will power various Telegram features — including ad payments, tokenized usernames, creator rewards, and in-app Mini Apps.
Users can now access Toncoin directly within Telegram without leaving the platform. Earlier this quarter, Telegram activated the TON Wallet for 87 million US users. Globally, the app serves over one billion monthly users.
Incoming Executive Chairman Manuel Stotz explained the rationale behind the move:
“Telegram is the preferred messenger for the growing global crypto community, and $TON is the currency that powers the Telegram ecosystem. In my judgment, permanent capital vehicles are particularly suitable for long-term holdings of $TON, which not only has the potential to compound in value, but also offers staking yield, meaning TSC can benefit from staking rewards.”
Following the deal, Verb will introduce new leadership. Veronika Kapustina, formerly at Morgan Stanley and the TON Foundation, will step in as CEO. Sarah Olsen, co-founder of Europa Partners and a former JP Morgan executive, will become chief financial officer. Blockchain.com CEO Peter Smith will serve as a special adviser, saying TON marks an important step for crypto adoption worldwide.
Over 110 investors participated in the raise. Major backers include Kingsway Capital, Vy Capital, Pantera, Blockchain.com, Kraken, Animoca, and Ribbit Capital. The company estimates it will hold one of the largest $TON positions outside the TON Foundation.
Trading, Treasury Strategy, and Legal
Around 36% of shares from the deal will remain locked for 6–12 months. After the closing, Verb will hold roughly 77% of the funds in cash, enabling aggressive $TON accumulation. The company expects to hold up to 5% of Toncoin’s total circulating supply.
Verb’s shares will continue to trade on Nasdaq under the ticker “VERB.” The rebranding and treasury strategy will go live right after the deal closes. TSC also plans to provide updates on Toncoin purchases, staking activity, and governance over time.
Cohen & Company Capital Markets served as financial adviser and placement agent. Reed Smith advised Kingsway Capital. Verb worked with Perkins Coie and Brownstein Hyatt Farber Schreck, while Cohen & Co. partnered with Morgan Lewis.
The offering was made under Regulation D, and TSC plans to file a resale registration statement with the SEC soon.