Nasdaq Reprimands TON Treasury for $558 Million Stock Sale, Crypto Buy

Core Viewpoint - Nasdaq issued a warning to TON Strategy for violating shareholder approval rules related to its cryptocurrency purchases and private stock sales Group 1: Company Actions - TON Strategy, formerly known as Verb Technology, raised approximately $558 million through a private investment in public equity (PIPE) to acquire Toncoin, a cryptocurrency linked to Telegram [2][3] - The company purchased $273 million worth of Toncoin without obtaining the necessary shareholder approval for either the PIPE financing or the subsequent purchase [3] Group 2: Regulatory Response - Nasdaq determined that TON Strategy did not intentionally avoid compliance and opted to issue a warning instead of delisting the stock [4] - The company believed it was following proper procedures based on advice from external advisors during the PIPE financing deal [4] Group 3: Market Dynamics - The incident reflects the rapid changes and blurred lines in the market as public companies increasingly invest in cryptocurrencies to enhance stock prices [5] - Following the acquisition of Toncoin, TON Strategy's stock price surged from around $9 in July to over $22 in mid-August, but has since plummeted nearly 82% to $4.08 [5][6]