AlphaTON Capital Corp, a digital asset treasury firm listed on Nasdaq under the ticker ATON, has recently announced that it has filed a $420.69 million shelf registration with the U.S. Securities and Exchange Commission (SEC).
This funding aims to support further AlphaTON’s ambitious plans for developing its artificial intelligence and high-performance computing infrastructure. According to the company’s plan, the expansion of this infrastructure will enhance Telegram’s Cocoon AI network and support the firm in pursuing mergers. It will also help AlphaTON acquire businesses that generate funds within the Telegram ecosystem.
Overcoming SEC Limitations for Funding Growth
Following AlphaTON’s shelf registration announcement, analysts discovered that the company previously encountered restrictions from the SEC’s “baby shelf rules.” Notably, these regulations limit how much smaller public firms can sell swiftly using a Form S-3 shelf registration statement. This is a common funding method mostly applicable for digital asset treasuries (DAT).
According to a statement from the Chief Executive Officer of AlphaTON Capital, Brittany Kaiser, they have achieved a significant milestone in overcoming the SEC’s ‘baby-shelf’ limitation on raising funds. This move illustrates the company’s pursuit of a global top position as a major provider of infrastructure for future decentralized AI.
“Once this shelf registration is active, we will have more financial flexibility to act swiftly on major opportunities,” Kaiser added.
Meanwhile, reports from reliable sources indicate that the Treasury firm has already identified several promising acquisition targets. These targets include startups focusing on payments, sharing content, and blockchain-based services within the Open Network ecosystem.
Analysts highlighted that the company’s funding will enable it to expand its treasury of TON tokens and other related digital assets. The firm’s decision has prompted other Digital Asset Trusts (DATs) also to consider growing their business through infrastructure services and acquisitions. This move is made at a time when the interest of public cryptocurrency holders appears to be decreasing.
AlphaTON’s interest in filing for a shelf registration grew when the treasury firm’s mNAV declined in November. At this time, the digital asset treasury firm announced that it had moved most of its assets into Toncoin and established staking positions. It also announced its intention to explore new ways to expand.
To demonstrate its commitment to seeking new ways to grow, the firm began by updating its agreement to purchase a 60% stake in the mobile gaming platform GAMEE for $15 million. Regarding its new developments, the company intends to acquire GMEE, valued at up to $4 million, and Watcoin tokens on the open market. Moreover, it plans to launch a co-branded TON Mastercard this December by collaborating with PagoPay and ALT5 Sigma.
The Crypto Industry Embraces Blockchain Technology for Expansion
Cocoon, which refers to Telegram’s Confidential Compute Open Network, is a decentralized platform for artificial intelligence computing. This network was established by Telegram and developed on the TON blockchain.
After being introduced just a few days ago, it adopted a strategy of rewarding users in Toncoin for renting out their GPUs to manage user queries.
Considering the advantages of this network, AlphaTON shared a statement highlighting that it has delivered a lot of Nvidia B200 GPUs to Cocoon. This move aims at establishing a new source of revenue for the firm’s business.
In the meantime, it is worth noting that after Telegram halted the development of its unique Layer 1 due to legal pressure from the SEC following its $1.7 billion initial coin offering, several community-driven initiatives, such as the Open Network, emerged.