Verb Technology Company's stock skyrocketed more than 200% intraday on Monday after it announced a $558 million PIPE deal and a pivot toward crypto.

The social commerce company said it plans to rebrand as TON Strategy Co., becoming the first publicly traded treasury reserve vehicle for Toncoin (TON), the native token of Telegram’s blockchain ecosystem.

The offering included about 58.7 million shares and pre-funded warrants priced at $9.51. Investor enthusiasm around the company’s move into crypto sent the stock soaring to a high of $29.33 before settling to about $27 at time of writing, according to Google Finance.

Proceeds from the raise will be used to acquire and stake TON as the company’s primary treasury asset, as it aims to capitalize on institutional interest in blockchain-native reserves.

Related: Ton Wallet goes live for Telegram users in US

TON-aligned investors take the lead

Several major investors in the $558 million deal have direct ties to Toncoin and the Telegram ecosystem, signaling that Verb’s pivot is part of a coordinated strategy to bring TON into public markets.

Kingsway Capital led the round. Kingsway’s CEO, Manuel Stotz, is president of the TON Foundation. Stotz will take over as executive chairman of the rebranded TON Strategy Co.

“Telegram is the preferred messenger for the growing global crypto community, and $TON is the currency that powers the Telegram ecosystem,” Stotz said in the announcement. “Permanent capital vehicles are particularly suitable for long-term holdings of $TON, which not only has the potential to compound in value, but also offers staking yield.”

Other investors include Blockchain.com, whose CEO Peter Smith will join as special adviser to TON Strategy Co., and Vy Capital, a longtime backer of Telegram. Additional participants like Animoca Brands and The Open Platform (TOP) have partnered directly with the TON Foundation on gaming, tokenized assets, and Telegram-integrated Mini Apps.

Related: The role of the Telegram ecoystem in the future of Web3 — Interview with Catizen

Crypto treasury companies on the rise

Verb’s pivot follows a growing trend of public companies beginning to hold altcoins as treasury assets, reflecting an increasing trend of corporate investment in crypto beyond Bitcoin. That momentum accelerated in late July, when at least 16 companies announced plans to raise or deploy over $7.8 billion into crypto.

Several companies moved into Ether (ETH) last week, including BTCS Inc., which filed to sell up to $2 billion in shares, and Sharplink Gaming, which purchased $338 million worth of ETH across two deals.

Last week, Tron Inc. announced plans to raise $1 billion to buy TRX, the native token of the TRON network. Around the same time, Canadian vape company CEA said it would raise $400 million to unlock up to $1.25 billion for purchasing Binance’s BNB token, sending its stock soaring 550%.

Mill City Ventures III finalized a $450 million deal to shift its focus toward acquiring Sui, while Cemtrex Inc. revealed a $1 million Solana (SOL) purchase, with plans to expand its position to $10 million.

Magazine: Danger signs for Bitcoin as retail abandons it to institutions — Sky Wee