Key Insights:
- The TON Foundation aims to raise $400 million via PIPE to launch a public treasury company.
- Kingsway Capital is expected to lead the investment and strengthen the ties between the financial and blockchain sectors.
- This initiative is similar to successful crypto treasury strategies by firms like MicroStrategy.
The TON Foundation is now collaborating with Kingsway Capital Partners to raise $400M to form a public treasury company. This company will be solely focused on accumulating Toncoin (TON), and will adopt a funding method known as private investment in public equity (PIPE).
The treasury firm’s mission is to buy and hold TON as a reserve asset, especially as long-term crypto reserves gain more and more traction.
What Is the PIPE Model and Why Does It Matter?
The PIPE structure allows select private investors to buy shares in a company. They often get these shares at a discount before it is publicly listed, and this method is considered effective for attracting capital quickly.
This is why it is increasingly being used in crypto-related ventures.
According to reports, the upcoming treasury company may even go public via a special-purpose acquisition company (SPAC) to quicken the listing process.
According to Bloomberg, TON Foundation and Kingsway Capital plan to raise $400 million for a crypto finance firm that will use TON tokens as its treasury asset. The unnamed firm will adopt a structure known as a private investment in public equity. https://t.co/HMTGFuvDPN
— Wu Blockchain (@WuBlockchain) July 24, 2025
In this case, the PIPE funding will be used to purchase Toncoin, and analysts say this approach could stabilize TON’s price by reducing the circulating supply over time.
Kingsway Capital’s Central Role
While multiple parties are expected to participate in the PIPE round, Kingsway Capital is expected to lead the investment effort. Its involvement isn’t an accident either.
Manuel Stotz, who heads Kingsway, also serves as the president of the TON Foundation. This dynamic is why this strategy is considered aligned with everyone’s interests.
Kingsway’s history in emerging markets investments also indicates that the firm understands the regulatory ups and downs of crypto-backed equity vehicles.
Toncoin, the native token of the Telegram Open Network (TON) itself, is currently the 27th-largest cryptocurrency. It has a market cap of roughly $7.68 billion and was originally built by Telegram’s team. TON has since grown into a standalone platform, which is independent of the messaging app.
Despite being down 23% year-to-date, TON has shown a great deal of strength. It posted a 9% gain in July, which shows fresh investor confidence.
Following in Michael Saylor’s Footsteps
The treasury plan is part of a more general trend, where crypto is now being treated not as volatile assets, but as corporate reserve holdings.
This trend was famously kickstarted by Michael Saylor’s MicroStrategy, which aggressively purchased Bitcoin and transformed its stock into a de facto crypto ETF.
Other firms are being inspired by MicroStrategy’s success and are emulating the approach. For example, Cohen & Co. and Cantor Fitzgerald, which were both mentioned in connection with the TON deal, have recently been involved in similar crypto treasury structures.
Michael Saylor just upsized Strategy's Series A “Stretch” preferred offering from $500 M to $2 B 🚀
It's now the biggest single corporate #Bitcoin buy plan of 2025. pic.twitter.com/8MsVcrX4x9
— Swan (@Swan) July 24, 2025
After news of the treasury plan, Toncoin’s price edged up by nearly 2% to a price of $3.16. While this stands as a relatively modest gain, it is still interesting, in light of the cryptocurrency’s trading volumes and the ongoing market slump led by Ethereum.
Overall, by anchoring the token as an institutional-grade reserve asset and pairing that effort with Telegram, TON could be on the verge of something big. While there are always risks with big moves like these, the vision is clear, and Toncoin wants to be more than just a utility token.
