TLDR
- VERB stock jumps, then drops after $558M PIPE deal, pivoting to crypto reserves.
- VERB secures $558M to focus on $TON, plans major pivot to crypto assets.
- VERB’s PIPE deal boosts $TON strategy, new leadership drives crypto shift.
- VERB raises $558M, pivots to $TON blockchain, eyes digital asset growth.
- VERB plunges 14% after $558M PIPE deal, focuses on crypto treasury reserves.
Verb Technology Company, Inc. (VERB) shares experienced a massive 79% spike in its stock price, surging above $30, only to see a sharp decline. On August 7, VERB closed at $19.28 but dropped 13.97% by midday on August 8, bringing its value to $17.00.
Verb Technology Company, Inc. (VERB)
This fluctuation followed the announcement of the company’s $558 million private investment in public equity (PIPE) transaction.
PIPE Transaction Marks Key Milestone for VERB
The $558 million PIPE deal, which Verb Technology completed, significantly alters its financial outlook. The company raised funds by issuing approximately 58.7 million shares of common stock, securing participation from over 110 institutional and crypto-native investors. The deal, co-led by Kingsway Capital, also saw investments from notable players such as Vy Capital, Blockchain.com, and Ribbit Capital, among others.
Verb Technology aims to establish itself as the leading treasury reserve of Toncoin ($TON), the cryptocurrency linked to the TON blockchain, which powers Telegram’s ecosystem. CEO Veronika Kapustina emphasized the strategic importance of this partnership, noting that it would help the company scale its digital asset strategy. Furthermore, the company is in the process of rebranding as TON Strategy Co. to reflect its new focus on crypto reserves.
Company Strategy and Plans with $TON
Verb Technology plans to direct the majority of the net proceeds from the PIPE deal toward acquiring $TON as its primary treasury reserve asset. The company intends to generate sustainable returns through staking rewards, which will support the management and growth of its $TON holdings. This approach aims to create a positive cash flow, helping to build long-term value from the cryptocurrency.
The company’s move into digital assets is part of a broader strategy to diversify its business operations. While focusing on $TON, it will continue to develop and expand its existing social commerce technology and video marketing units. This dual approach positions the company to capitalize on both the growing digital asset market and its established expertise in tech-driven commerce.
Leadership Shifts and New Direction for Verb Technology
Verb Technology has appointed a new leadership team to guide the company through its transition into the digital asset space. Executive Chairman Manuel Stotz, also the founder of Kingsway Capital, brings over 15 years of experience in global investments and blockchain. He has been instrumental in Kingsway’s growth and previously supported the TON ecosystem’s development.
CEO Veronika Kapustina, who previously advised the TON Foundation, will oversee the company’s integration into the crypto sector. Her strong background in institutional finance and blockchain makes her well-equipped to drive the company’s new direction. The leadership team also includes CFO Sarah Olsen, who has significant experience in blockchain and tokenized assets, and Peter Smith, the CEO of Blockchain.com, who will serve as a special advisor.
This strategic reshuffling reflects the company’s commitment to becoming a leading player in the blockchain space. Verb Technology’s aggressive pivot toward $TON marks a significant step in its evolution.
