The competition for funds in alts is heating up! VERB is splurging $780 million to crazily buy TON, aiming for a circulation supply of 5%.

The competition for funds in the altcoin market is accelerating. VERB Technologies announced on Thursday that it has accumulated $713 million in Toncoin (TON) and $67 million in cash, bringing its total assets to over $780 million. The company plans to obtain rewards through debt and equity financing, as well as staking, ultimately holding 5% of the circulating supply of TON (approximately 128 million tokens).

Private placement frenzy attracts capital, stock price soars 200%

VERB completed a private placement of $558 million in August, with the stock price soaring over 200% shortly thereafter. The announcement showed that most of the raised funds have been used to acquire TON, indicating that the company is betting on the long-term value of this altcoin.

The company also stated that it will continue to leverage debt and equity instruments to expand its holdings, and increase revenues through a staking mechanism, further strengthening its influence in the TON ecosystem.

Wall Street funds flood into alts, causing divergence

VERB's actions reflect that Wall Street and public companies are accelerating their engagement with cryptocurrencies, but market perspectives are divided:

Supporters: believe that directly holding crypto assets can yield excess returns in a bull market.

Opponents: Warning that high leverage and high position ratios may trigger a chain liquidation in a bear market, dragging down the crypto and stock markets.

August Altcoin Financial Strategy Case

Recently, several listed companies have successively announced the expansion of their alts reserves, and the market reaction has been mixed:

Bit Mining (BTC Mining Company): First Acquisition of Solana (SOL)

VivoPower (energy company): Expands XRP holdings, stock price soars 32%

ALT5 Sigma Corporation (Fintech): Equity financing of $1.5 billion, supporting the governance token WLFI of the DeFi protocol participated by members of the Trump family.

Safety Shot (beverage company): announced the purchase of BONK memecoin as a reserve asset, stock price plunged over 50%.

Windtree Therapeutics (Biotechnology): Stock price plummeted 77% in a single day, facing delisting from NASDAQ.

Potential Impact and Market Outlook

If the goal of holding 5% of the circulating supply of TON is successfully achieved, it will become an important funding source for the ecosystem, possibly:

1. Enhance the liquidity and price support of the TON market.

2. Strengthen the influence of institutions in the altcoin market.

3. Inspire more listed companies to follow suit, promoting the financialization of alts.

However, a high proportion of holdings and leveraged operations may also amplify risks during market downturns, leading to drastic price fluctuations and even triggering a wave of liquidations.

Conclusion

The $780 million acquisition of TON by VERB has injected new capital and topics into the alts market, highlighting that institutional funds are accelerating their entry into the crypto asset space. In the future, as more publicly listed companies adopt similar strategies, the competition for funds in the alts market will further intensify, but investors must also be wary of the potential risks associated with high leverage and concentrated holdings. For more real-time market dynamics and on-chain data analysis, please follow the official Gate platform.