Verb Technology, now rebranding as TON Strategy, plans to raise $558 million through a private placement to accumulate and stake Toncoin, the cryptocurrency linked to The Open Network (TON) of Telegram. The Las Vegas-based company aims to use Toncoin as its primary treasury reserve asset. Following the announcement, Verb Technology's stock price surged 140%, reaching $22.68. The private placement involved the sale of 59 million common shares at $9.51 each. Despite the excitement around the fundraising, Toncoin's price fell 6.9% to $3.41 on the day of the announcement, although it had appreciated by 24% over the preceding month. The exclusivity deal between Telegram and The Open Network requires mini apps on Telegram to utilize Toncoin. The network, which faced regulatory challenges in the past, was revived by an open-source community after Telegram distanced itself. The PIPE transaction is expected to close soon, with leadership changes confirmed to follow the deal.

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