Kingsway funds demand larger TON Strategy buybacks

The Tip Desk · October 28, 2026 · 2 min read

The 21.96% holder said the stock trades at a significant discount to estimated treasury asset value per share.

Kingsway Capital Partners Limited and its affiliated funds, together with Manuel Stotz, TON Strategy Company’s Executive Chairman, delivered an open letter to the board on October 27, 2026, saying the common stock trades at a significant discount to the issuer’s estimated treasury asset value per share and that larger and more immediate share repurchases would help close that gap.

The Reporting Persons also expressed concern about the company’s valuation and performance and about how the board has engaged on capital allocation, leadership, strategy, stockholder engagement and board processes.

The group holds 12,091,720 shares, or 21.96% of common stock outstanding, based on 55,071,989 shares as of August 4, 2026. That percentage rose from about 19.93% in the prior amendment solely because the share count declined; other than 70,000 shares bought by FCO4 on September 29, 2025, the group has not acquired or disposed of shares since August 7, 2025.

The funds bought the position in an August 7, 2025 private placement. Stotz was appointed Executive Chairman in connection with that deal and was elected a director at the June 9, 2026 annual meeting. After the placement, TON Strategy implemented a treasury strategy of acquiring and staking Gram, formerly Toncoin, the native digital asset of The Open Network.

Stotz and Kingsway representatives had already communicated with the board and management about capital allocation, including a share repurchase program, strategy and stockholder engagement, including rights to call special meetings. The Reporting Persons said they intend to keep engaging on those matters, board composition, governance and stockholder rights.

Depending on performance, market conditions and the board’s response to the October letter, they said they may acquire more shares, dispose of some or all of the holding, seek board changes, propose strategic alternatives, advocate changes to capital allocation and governance, or call or request a special meeting.

The letter itself said TON Strategy traded at a 44% discount to estimated treasury asset value per share as of October 26, 2026, and that Kingsway had advocated an aggressive repurchase program since the earliest days of the relationship. It said each share retired below underlying asset value increases estimated treasury asset value per share for remaining shares.

The group said it is making the statements in its capacity as stockholders and that nothing limits Stotz’s fiduciary duties as a director and officer.