VERB Technology Company, which focuses on acquisitions in Toncoin (TON), announced it has amassed approximately $713 million in TON and $67 million in cash, summing up to over $780 million in total assets.
The firm successfully closed a $558 million private placement in August, resulting in a more than 200% surge in its share price. According to Thursday’s announcement, a significant portion of these funds went towards acquiring TON.
VERB aims to obtain 5% of the altcoin’s circulating supply, translating to around 128 million tokens, by issuing corporate debt and equity and leveraging staking to garner additional rewards.
VERB stock price. Source: Yahoo Finance
Companies investing in altcoin treasuries are rising, providing Wall Street with exposure to cryptocurrencies. This has left investors split, with some viewing it as a chance to surpass returns from direct crypto holdings, while others caution against potential overleveraging.
Elevated debt levels in firms holding crypto could trigger a wave of liquidations during market downturns, adversely affecting digital asset and equity valuations, which might lead to a prolonged crypto bear market.
Related: SharpLink shares drop 12% on Q2 crypto impairment loss
Companies diversify into altcoins, with mixed effects
In August, several companies unveiled altcoin treasury strategies or increased their reserves, drawing varied responses from investors regarding the adoption of such policies.
Bit Mining, a Bitcoin (BTC) mining firm, revealed its first Solana (SOL) acquisition on Aug. 5, alongside various companies boosting their SOL holdings.
VivoPower, a publicly listed energy company, expanded its XRP (XRP) treasury in August, resulting in a 32% spike in its share price.
ALT5 Sigma Corporation, a financial technology entity, garnered $1.5 billion in equity to support its World Liberty Financial (WLFI) corporate treasury, the governance token of a decentralized finance protocol backed by members of former US President Donald Trump’s family.
Safety Shot, a beverage company, announced intentions to acquire the BONK memecoin as a treasury reserve, leading to a more than 50% decline in its shares.
Biotech firm Windtree Therapeutics, involved in BNB (BNB) treasury management, plummeted by 77% on Wednesday after the Nasdaq announced it would delist the company for non-compliance with standards.
Magazine: Altcoin season 2025 is almost here… but the rules have changed
