The TON Foundation and Kingsway Capital Partners are currently in the process of raising a substantial amount of funds, aiming for at least $400 million for a crypto treasury company that would hold Toncoin. This initiative is reported by Bloomberg News, citing sources familiar with the matter.
The proposed structure for this venture involves utilizing a private investment in public equity (PIPE) setup, where a publicly traded company sells shares to a group of investors. Among the potential investors, Kingsway could be one of the key players. Manuel Stotz, who heads Kingsway, also serves as the president of the TON Foundation, which is dedicated to expanding the use of its blockchain technology, particularly focusing on the US market.
Despite the buzz surrounding this development, there has been no official statement issued by Stotz, Kingsway, or the TON Foundation regarding this fundraising effort. Requests for comments have gone unanswered at this time.
Toncoin is the native token of the Telegram Open Network blockchain. Currently, it holds the 27th position in the cryptocurrency market, with a market capitalization of close to $8 billion. Originating from one of Telegram’s co-founders, Ton operates independently from the messaging arm of Telegram.
While many major altcoins have experienced significant growth since the market’s low point in April, Toncoin has seen a decline of 23% at the time of writing, trading at $3.17.
Despite this dip, Toncoin has shown a 9% increase in July, noteworthy given the recent controversy surrounding the Ton Foundation allegedly offering a golden visa program in the UAE in exchange for the token. The UAE authorities refuted this claim, with the Ton Foundation clarifying that it was a pilot project in collaboration with a licensed partner and had no formal agreement with the government.
In a move reminiscent of Michael Saylor’s strategy with Bitcoin, Cohen & Co. is facilitating the banking services for establishing the treasury company. The firm previously advised Dynamix in a $1.5 billion blank-check deal to establish an Ethereum-focused crypto treasury company.
Additionally, Cantor Fitzgerald has expressed interest in exploring the creation of public companies holding Toncoin. Notably, Cantor has been involved in launching several prominent crypto treasury companies in recent months.
This endeavor comes in the wake of a surge in similar initiatives inspired by the success of Michael Saylor’s Bitcoin holding company, MicroStrategy, whose stock has soared by more than 3,400% over the past five years. The crypto industry continues to evolve, with innovative approaches being explored to capitalize on the potential of digital assets.