Verb Technology: Better To Buy Toncoin Than VERB Stock

Summary Verb Technology has pivoted to a crypto-focused strategy, holding over $713 million in Toncoin and planning a rebranding to Ton Strategy Co. Operational growth is driven by Go Fund Yourself and MARKET.live, but revenues remain small and losses persist, making profitability a distant goal. The stock’s recent surge is tied to its TON holdings; however, the underlying business does not justify the current valuation without significant, sustained growth. For investors seeking TON exposure, direct purchase of the cryptocurrency is preferable to buying Verb stock, given the company’s ongoing losses and execution risks. Verb Technology Company Inc. ( VERB ) has undergone a dramatic transformation in recent years. Originally positioned as a SaaS provider for interactive video-based sales tools, the company has pivoted into the fields of social commerce and digital asset management. The cause for the recent stock price movement is the decision to initiate a corporate treasury of Toncoin, the native cryptocurrency of The Open Network (TON) blockchain. This has become much more common for companies to hold crypto on the balance sheet. This is even more than just buying crypto to store in the Treasury. The company recently announced that its treasury assets exceed $713 million of TON , which is more than half of its market cap. The company is also planning to rebrand as Ton Strategy Company. It is not merely adding crypto to the Treasury holdings, but more so that the company intends to put focus on crypto as a business. My question becomes, is there any value in the underlying business, or is all the value in the holding of TON? If an investor is going to buy into the business just to hold TON, then why not go buy and hold TON directly? Is the underlying business going to hold back or increase the value of the Treasury holdings? Company Overview Verb operates at the intersection of livestream shopping, AI-powered video engagement, and most recently, blockchain-based treasury strategies. The company operates in three business units: MARKET.live, Go Fund Yourself (a TV show), and Vanity Prescribed/Good Girl Rx. MARKET.live is an omnichannel livestream shopping marketplace designed to capitalize on the growth of influencer-led retail and video commerce. In April 2025, Verb expanded its reach through the acquisition of Lyvecom, an AI-driven, no-code platform that allows creators and brands to convert videos into shoppable content. Lyvecom also introduced automated virtual hosts and repurposing tools that significantly lower the barrier to entry for merchants and influencers seeking to scale video-driven e-commerce. This acquisition dovetails with MARKET.live, creating a more robust, integrated ecosystem. Go Fund Yourself is a platform combines an interactive reality TV show that has been described as a combination of Shark Tank and Kickstarter with MARKET.live’s back-end capabilities allowing viewers to tap or scan onscreen icons and QR codes to facilitate an investment, in near real time, as they watch companies presenting before the Show’s panel of “Titans”. Presenting companies that sell consumer products are able to offer their products directly to viewers during the show in near real time through the same onscreen technology. (company filings) Vanity Prescribed/Good Girl Rx is a telehealth initiative that operates in the rapid growth associated with the resale of the new weight-loss drugs. Vanity Prescribed leverages MARKET.live’s social commerce technology, which the Company intends to employ to disrupt the traditional healthcare model by utilizing social commerce capabilities to provide tailored healthcare solutions at affordable, fixed prices, without hidden fees, membership costs, or inflated pharmaceutical markups. (company filings) The biggest move that the company has made was the launch of TON Strategy Co. in August, a new division backed by a heavily oversubscribed $558 million private placement. The initiative positions Verb as a treasury vehicle for Toncoin, the native cryptocurrency of the TON blockchain. We will discuss this in more detail later. Financial Review I first want to review the financials of Verb and see if there is any value in the company’s operations without any discussion on the treasure strategy. Verb’s financial trajectory has been volatile over the years with the business changes. In fiscal year 2024, revenue increased to $895,000, a more than 13x increase from the prior year. Although the amount of revenue it started with was nearly nothing. Revenues less than $1 million are not something to brag about. The momentum accelerated into 2025: first-quarter revenue reached $1.3 million, already surpassing the entire revenue base of 2024. The second quarter saw even higher revenues of $2.1 million. This growth in revenue has primarily come from Go Fund Yourself. The show launched in July 2024 and has started to make significant contributions to revenue. Market.Live has also seen its revenues increase. The table below outlines the revenues for each business unit and the company as a whole. Company Filings Revenue from Go Fund Yourself has grown significantly since launch and has far surpassed MARKET.Live in revenue. My question is: how much growth can the company have from one show, and how sustainable is that growth? Yes, it is showing really good growth and still has a lot of room to run. Revenues of $1.4 million are not that large, and I would expect further growth there. The show could lose popularity, and revenues could decrease at any time. I don’t know if revenues from 1 TV show are a sustainable business. In the long term, I just don’t see this as a sustainable source of growth. The company will likely have to create new shows in the future and hope they stick with the audience. MARKET.Live is also seeing good growth. Revenues increased 22% quarter over quarter. The only problem is that it is coming off a small revenue base. Those growth rates will have to continue for a while before they are able to push revenues high enough to break even. The company is currently losing more money than it is generating in revenue. That means it needs large growth for years to come before it has a chance to get to profitability. Company Filings The company ended Q2 with over $10 million in cash or equivalents on the balance sheet. The company burned through $3.35 million during the quarter. I would expect that rate to decrease as revenues continue to grow. That being said, the company only has 3 quarters of a runway at the current burn rate. TON Strategy The main cause for the recent stock spike is due to the news that Verb raised $558 million to purchase TON as its primary Treasury reserve asset. This news caused the stock price to jump from $9.51 a share to over $20 in a trading day. The company noted the following its TON Strategy: “The company's strategy targets the accumulation of over 5% of $TON’s circulating supply, establishing the Company as a significant participant in maintaining and securing the network infrastructure. In addition, the Company intends to steadily increase $TON held per share through reinvestment of cash flows, staking rewards, and disciplined capital markets activity… The strategy is expected to generate sustainable staking rewards to initiate, manage, and grow the company's $TON exposure in a cash flow-positive manner. The Company intends to rebrand as TON Strategy Co. (TSC) to reflect its new direction.” So what are TON and Toncoin? From Wikipedia : “TON, also known as The Open Network (previously Telegram Open Network), is a decentralized layer-1 blockchain. TON was originally developed by Nikolai Durov, who is also known for his role in creating the messaging platform Telegram. Telegram had planned to use TON to launch its own cryptocurrency (Gram), but was forced to abandon the project in 2020 following an injunction by US regulators. The network was then renamed, and independent developers have created their own cryptocurrencies and decentralized applications (dApps) using TON. Toncoin, the principal token of The Open Network, is deeply integrated into the Telegram messaging app, used for paying rewards to creators and developers, buying Telegram ads, hosting giveaways, or purchasing services such as Telegram Premium.” Telegram has nearly one billion monthly active users. It is easy to see why TON represents one of the fastest-growing blockchain ecosystems. Verb aims to leverage this integration by building one of the largest publicly traded Toncoin treasuries in existence. Outlook and Growth Catalysts Verb’s growth prospects are tied to livestream commerce. I expect the global livestream shopping market to continue to grow, driven by social media integration and influencer-led retail. MARKET.live and Lyvecom provide Verb with direct exposure to this trend. Verb is a very small player in this market with revenues of $688 thousand during the quarter. I do not know if it will ever be able to establish itself as a dominant player in the market. Go Fund Yourself is also in the same vein as livestream commerce. The company is seeing strength in the show, but I see limitations on the long-term growth potential. The TON Strategy initiative adds a new growth driver. Verb effectively holds an asset-backed growth model tied to an expanding blockchain ecosystem. This provides shareholders with both operational upside and exposure to crypto market appreciation. If TON adoption within the Telegram ecosystem accelerates as expected, Verb could benefit from both Treasury appreciation and strategic positioning as a publicly traded TON proxy. Price and Value At roughly $20 per share, Verb’s market capitalization hovers around $1.25 billion. The company announced that it had $780 million in the Treasury, with $713 million being in TON. If we take that off the market cap, we are left with a market cap of nearly half a billion. I have a hard time justifying that valuation with an estimated annual revenue of $5.5 million and an operating loss for the year. The company would have to grow revenues at a very high rate for many years to grow into that valuation. Much of the value is coming from the potential growth of their treasury strategy and the growth of TON. If an investor thinks that TON will appreciate its price, they would be better off buying it directly and not being tied to the loss-making entity. Risks and Headwinds There are a lot of risks for the company. Execution risk looms large. MARKET.live has shown promising growth, but revenues remain in the low single millions. Scaling this to a level that can justify its valuation and sustain long-term profitability will require significant adoption by merchants and influencers, and the competitive landscape is crowded with well-funded rivals such as TikTok Shop and Amazon Live. The TON Strategy Co. pivot introduces heavy reliance on cryptocurrency markets. While Toncoin has shown rapid adoption, it remains volatile and subject to both speculative cycles and regulatory uncertainty. Finally, shareholder dilution remains a risk. While the $558 million financing provides ample capital, further capital raises, acquisitions, or share issuances could impact existing shareholder value. Investment Verdict I don’t see the operating business being near the value assigned to it. The company is showing strong growth rates, mostly related to its Go Fund Yourself business unit. I think there is continued room for growth within the space. I also think of the MARKET.Live operates in a growing market. The company is just far away from any real profits and value, with revenues expected at $5.5 million for the year. If an investor wants exposure to TON, then I would suggest that the investor go and purchase the crypto directly rather than gain exposure through a loss-making entity. The company will have to supplement its loss-making operations with any staking profits from TON. Better to buy the crypto and reinvest any staking rewards. It is not available on all the large exchanges due to its investigation by the SEC, but it is available for purchase on some major exchanges (Kraken). I am not endorsing the purchase of TON or doing an evaluation on the crypto. Obviously, the value of Verb is tied to the crypto at this point, but if you think the future of Verb is bright because of TON, then I think you would be better served purchasing the crypto directly. For this reason, I do not recommend purchasing the stock. The stock very well may see a price increase due to the appreciation of TON, but that return would be better if you owned the coin directly.