Verb Technology Company (VERB) witnessed an extraordinary surge in its stock price, soaring over 200% on Monday, August 4, 2025, following its strategic announcement to pivot towards the Telegram Open Network (TON) ecosystem. The company revealed plans to raise $558 million through a private placement, intending to use the funds to acquire Toncoin (TON) and establish itself as the first publicly traded treasury reserve vehicle for the Telegram-based blockchain.
As part of this strategic shift, Verb Technology will rebrand as TON Strategy Co., signaling a complete alignment with TON and its native token. The offering comprised approximately 58.7 million shares and pre-funded warrants priced at $9.51. Investor enthusiasm surrounding the company's move into crypto propelled the stock to a high of $29.33 during intraday trading before settling near $27.
The dramatic increase in stock price reflects strong investor confidence in the company's new direction, largely driven by the involvement of key TON-aligned investors, including Kingsway Capital, Blockchain.com, Vy Capital, Animoca Brands, and The Open Platform (TOP). Manuel Stotz, CEO of Kingsway Capital and president of the TON Foundation, will transition to executive chairman of the rebranded entity, further solidifying the connection between Verb and the TON ecosystem.
Verb Technology's strategic shift aligns with the broader trend in the crypto market, where public companies are increasingly allocating capital to alternative cryptocurrencies and blockchain-native assets beyond Bitcoin and Ethereum. In late July alone, at least 16 companies announced over $7.8 billion in crypto-related capital raises or investments.
The company intends to allocate the majority of the proceeds from the fundraising to acquire Toncoin as its primary treasury reserve asset, leveraging the long-term value and staking yields associated with the cryptocurrency. This strategic move is not merely a name change but a fundamental shift in Verb's business model. The company aims to generate sustainable staking rewards to manage and grow its TON exposure.
According to Investing.com, the private placement was led by Kingsway Capital and anchored by Vy Capital, Blockchain.com, Ribbit Capital, and Graticule (GAMA), with participation from numerous other crypto-native investors, including CMCC Global, Pantera, and Kraken. The transaction includes 58.7 million shares and pre-funded warrants with participation from over 110 institutional backers and is expected to close around August 7.
Upon closing of the transaction, the company will be led by an experienced team, including Manuel Stotz as Executive Chairman, Veronika Kapustina as CEO, and Sarah Olsen as CFO, with Peter Smith of Blockchain.com serving as Special Advisor. Verb Technology's existing business operations will continue. The company is set to become one of the largest holders of Toncoin globally. Verb is poised to hold 5% of the total TON supply, tapping into Telegram's vast user base of over 1 billion users for potential growth.
