tl;dr
The TON Foundation and Kingsway Capital Partners plan to raise at least $400 million to create a crypto treasury company holding Toncoin, using a private investment in public equity (PIPE) structure. Manuel Stotz, leading both organizations, aims to expand TON blockchain's presence, especially in th...
The TON Foundation and Kingsway Capital Partners are aiming to raise at least $400 million to establish a crypto treasury company that would hold Toncoin. This initiative is planned to use a private investment in public equity (PIPE) structure, where a publicly traded company sells shares to select investors, with Kingsway potentially involved as one of them.
Manuel Stotz, who leads Kingsway and serves as president of the TON Foundation, is spearheading efforts to expand the TON blockchain’s reach, especially in the US. Despite circulating rumors, no public statements have been issued by Stotz, Kingsway, or the TON Foundation, and they have declined to comment.
Toncoin, the native token of the Telegram Open Network blockchain, ranks as the 27th-largest cryptocurrency with a market capitalization near $8 billion. Created by one of Telegram’s co-founders, TON now operates independently from Telegram’s messaging platform. While many large-cap alternative cryptocurrencies have surged since April, TON has fallen 23% recently but has seen a 9% gain in July.
The token faced controversy recently when the TON Foundation reportedly offered a golden visa to the United Arab Emirates in exchange for Toncoin. The UAE denied this claim, and the foundation clarified that the offer was part of a pilot project with a licensed partner, not an official government agreement.
In forming the treasury company, Cohen & Co. is providing banking services, following its advisory role for a $1.5 billion Ethereum-focused crypto treasury company setup. Additionally, Cantor Fitzgerald has shown interest in developing public companies holding Toncoin, having supported the launch of multiple crypto treasury firms recently.
This fundraising effort aligns with a growing trend inspired by Michael Saylor’s Bitcoin holding company, Strategy, whose stock has soared over 3,400% in five years, signaling strong investor appetite for crypto treasury vehicles backed by established financial practices.