Wall Street's Crypto Gamble: A Risky Bet on Digital Assets

A public company, TON Strategy, recently faced a warning from Nasdaq for breaking rules about getting shareholder approval. They raised over $500 million by selling shares privately to buy a lot of Toncoin, a cryptocurrency linked to Telegram. Nasdaq didn't punish them severely because it seemed like an honest mistake, not a deliberate rule break. TON Strategy, which used to be called Verb Technology, is one of many companies that have jumped into the crypto world. They thought buying a lot of Toncoin would make their stock price go up quickly. But after an initial surge, their stock price dropped over 80%, showing how risky these moves can be. The company sold $558 million worth of shares privately in August to buy Toncoin. But they didn't get the necessary approval from shareholders for this deal or for spending $273 million of that money on more Toncoin. Nasdaq said the company believed they were following the rules based on advice from external advisors. This situation shows how quickly things are changing in the world of finance. Many companies are trying to boost their stock prices by investing in crypto, but these gains often don't last long. Before changing its name and focusing on crypto, Verb Technology's stock was around $9 in July. After buying Toncoin, it briefly rose to over $22, but then fell sharply.