TON Foundation and Kingsway Capital Partners plan to raise $400 million to launch a public company holding Toncoin as its primary treasury asset. The initiative follows the MicroStrategy model of building institutional crypto exposure through public equity markets.
The company will raise capital through a Private Investment in Public Equity transaction, where institutional investors purchase public shares at a discount, according to Bloomberg. The funds will purchase Toncoin, the native token of the Telegram Open Network blockchain.
The new entity may utilize a Special Purpose Acquisition Company structure to go public, mirroring other crypto treasury firms. MicroStrategy’s stock surged 3,400% over five years by holding Bitcoin on its balance sheet, establishing the template for crypto treasury companies.
Kingsway Capital, led by Manuel Stotz, is expected to be one of the investors in the new company. Stotz is also the president of the TON Foundation, which has been working to expand the use of its blockchain platform, especially in the United States.
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