Software firm Verb rebrands as TON Strategy Company and secures a record-breaking $558 million investment.

In a significant move, Telegram and the TON Foundation have announced that TON will be the exclusive blockchain powering Telegram's ecosystem. This decision comes as part of a broader strategy by the messaging giant to deepen its ties with the cryptocurrency world.

The announcement follows the completion of a private placement round by Verb Technology Company, Inc. (Nasdaq: VERB), which raised $558 million. The deal, led by Kingsway Capital, involves over 110 institutional investors, including Vy Capital, Pantera, ParaFi Capital, and Arrington Capital.

Manuel Stotz, founder and CEO of Kingsway Capital, will serve as the President of the TON Foundation and the incoming executive chairman of the rebranded company, TON Strategy Co. (TSC). The company plans to rebrand and become the first publicly traded treasury reserve vehicle for Toncoin ($TON).

According to Stotz, permanent capital vehicles are suitable for long-term holdings of $TON, which offers staking yield. TSC plans to use the majority of the net proceeds from the private placement to acquire its primary treasury reserve asset, $TON. This strategy positions TSC as one of the largest holders of $TON globally and enables it to generate sustainable staking rewards.

The trend indicates an increase in appetite for exposure to crypto beyond Bitcoin. Verb's stock skyrocketed over 200%, closing at $20.42 (+114.72%), after the announcement, reflecting the market's positive response to this strategy.

Other companies moving into non-Bitcoin cryptocurrencies include 180 Life Sciences Corp (Nasdaq:ATNF) with Ether (ETH), Bitmine, Sharplink, and Bit Digital. Upexi opted for a Solana (SOL) treasury, while others have announced treasury strategies denominated in Sui, Binance Coin, and Hyperliquid tokens.

In the Telegram ecosystem, $TON is the only accepted payment method for Telegram Ads in most countries. Moreover, $TON is the only way creators and mini app developers on Telegram can withdraw rewards earned from users and advertisers.

This move by Telegram and TSC aligns with a recent trend of public companies pivoting to build non-Bitcoin crypto treasuries. Verb Technology's announcement reflects this trend, and it's expected that more companies will follow suit in the coming months. The press release states that this move aims to initiate, manage, and grow TSC's $TON exposure in a cash flow positive manner.