TON Foundation To Raise $400M For Toncoin Treasury Company
Highlights
- TON Foundation is striking a partnership with Kingsway Capital to float a TON Treasury company.
- The incoming company will be publicly listed with Kingsway tipped to be a frontline investor.
- TON price spiked amid the development to trade at $3.16.
TON Foundation has its sights on joining the trend of cryptocurrency treasury companies, exploring an arrangement with Kingsway Capital Partners. Both entities will float a publicly listed company that will buy and hold Toncoin on its balance sheet.
TON Foundation To Launch Toncoin Treasury Company
According to a Bloomberg report, TON Foundation and Kingsway Capital Partners are inching closer to launching a public company to accumulate Toncoin. The duo is seeking to raise as much as $400 million from a pool of investors to advance the company’s Toncoin treasury operations.
While details of the incoming Toncoin treasury company remain under wraps, there is speculation that the parties will lean on a special purpose acquisition company (SPAC) to go public. Bloomberg sources revealed that the unnamed company will turn to a private investment in public equity (PIPE) to raise funds.
Led by Kingsway Capital, several investors will privately purchase shares in the new company at a discount, with the company using the raised capital to fund its TON purchases.
Amid the announcement, the TON price surged by nearly 2% to trade at 3.16, leaving the market capitalization at 7.68 billion. However, TON’s daily trading volumes are down by 18% over the last day amid fears of a broad cryptocurrency market correction led by Ethereum.
Since the start of the year, crypto treasury companies have grown by leaps and bounds, with Bitcoin treasuries leading the charge. Ethereum treasury companies, led by SharpLink Gaming and BitMine, are keeping pace with corporate holders of Bitcoin.
Other altcoins like Solana have recorded an influx of treasury companies spearheaded by Sol Strategies and DeFi Development Corp. Early in the day, Nature’s Miracle unveiled an XRP treasury plan while BNB’s all-time high was driven by frenetic corporate adoption.
TON Foundation is keen on moving on from its $135,000 UAE Golden Visa offer fiasco that turned out to be a premature announcement without any government backing. At the time, TON Foundation announced that investors would receive a 10-year UAE Golden Visa for staking $100,000 worth of TON for three years.
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