TON Foundation and Kingsway Capital Partners are planning to raise $400 million this year to launch a public company that will buy and hold Toncoin, Bloomberg has reported.
The two partners want to tap into the trend of crypto treasury companies, which have now become a popular way for investors to gain exposure to digital assets.
The company will likely use a structure known as a private investment in public equity (PIPE), according to a source familiar with the matter. The deal may also involve a special purpose acquisition company (SPAC), a fast-track method to go public.
According to Bloomberg, several investors will privately buy shares in the new company at a discount. The funds raised will be used to purchase Toncoin. Kingsway Capital, led by Manuel Stotz, who also serves as president of TON Foundation, will play a major role in the fundraising.
The company has not yet been named, and both Kingsway and TON Foundation have declined to comment on the report. “We are seeing strong interest in Toncoin from institutional players,” a source told Bloomberg.
Cohen & Co. is reported to be providing banking services to help structure the treasury company. The same firm earlier advised Dynamix on a $1.5 billion SPAC deal to form an Ether-based treasury company.
Cantor Fitzgerald, a financial firm that has helped launch several treasury companies in recent months, is also reportedly exploring opportunities related to Toncoin. The market has responded positively.
Following the news, Toncoin’s price rose a modest 0.62% to $3.18. This led to a market cap of $7.68 billion. However, trading volume dropped 18%.
Toncoin is the native token of the Telegram Open Network. It was originally created by the same team behind the Telegram messaging app, but now operates independently. Even so, Toncoin’s price often moves with Telegram-related news.
As of now, Toncoin ranks among the top 24 cryptocurrencies by market value, according to CoinMarketCap. Despite recent gains, the token is down nearly 40% since the start of the year. Earlier this year, the TON Foundation made headlines with a $135,000 UAE Golden Visa offer, which was later revealed to lack government approval.
