VERB, TON Treasury Company, Reveals More Than $780 Million in Assets

VERB Technology Company, which is engaged in Toncoin (TON) acquisitions, announced it has amassed approximately $713 million in TON and $67 million in cash, amounting to over $780 million in total assets.

The firm executed a $558 million private placement in August, leading to a more than 200% surge in its share price. Most of this capital was allocated to acquiring TON, as indicated in Thursday’s announcement.

VERB aims to secure 5% of the circulating supply of the altcoin, approximately 128 million tokens, through the issuance of corporate debt and equity, as well as via staking to generate additional rewards.

Companies managing altcoin treasuries are increasingly appearing, providing Wall Street with cryptocurrency exposure, while investor sentiments remain polarized. Some view this as an opportunity for better returns than directly holding crypto, whereas others caution against potential overleveraging.

High levels of debt among corporations investing in cryptocurrencies may trigger a wave of liquidations in a market downturn, which could negatively affect both digital asset and equity prices, possibly resulting in a prolonged crypto bear market.

Related: SharpLink shares drop 12% on Q2 crypto impairment loss

Companies diversify into altcoins, with mixed effects

Various companies unveiled altcoin treasury strategies or expanded their reserves in August, eliciting mixed reactions from investors regarding the implementation of these policies.

Bit Mining, a Bitcoin (BTC) mining firm, announced its inaugural acquisition of Solana (SOL) on August 5, along with several other companies that increased their SOL holdings.

VivoPower, a publicly traded energy firm, expanded its XRP (XRP) treasury in August, resulting in a 32% spike in its stock price.