AlphaTON Capital Corp. says it has taken a significant step in reshaping its business, announcing that Telegram’s Cocoon AI network is now generating revenue as the company ramps up its GPU infrastructure rollout.
In a series of updates released Wednesday, the Nasdaq-listed firm said revenue production began in December, following the deployment of its initial fleet of graphics processing units to support AI inference workloads on Cocoon. The network is Telegram’s confidential compute platform built on the TON blockchain and is designed to handle privacy-focused artificial intelligence tasks.
AlphaTON CapitalThe development marks a shift for AlphaTON away from its earlier role as a passive holder of digital assets toward operating revenue-generating AI infrastructure. The company previously disclosed a $46 million compute infrastructure agreement tied to Cocoon, laying the groundwork for its current expansion.
AlphaTON said it has since increased its computing capacity with additional high-performance chips and is continuing to scale toward a planned deployment of more than 570 NVIDIA B300 GPUs. Delivery of the full batch is scheduled for March. While the company did not disclose current revenue figures, it is projecting a 27% internal rate of return and more than $11 million in net present value from the GPU rollout.
Alongside the infrastructure update, AlphaTON reported raising a net $44 million in capital. This includes a $15 million registered direct offering priced at $1.00 per share. According to the company, most of the proceeds will be used to fund the ongoing AI infrastructure build-out and support working capital needs.
The company also outlined several new partnerships tied to its confidential compute strategy. Among them is an agreement with the Midnight Foundation, which AlphaTON said is expected to generate recurring monthly revenue through network participation. It also announced the launch of an open-source “Claude Connector,” designed to integrate Anthropic’s AI models with the TON blockchain and Telegram ecosystem.
To support future growth, AlphaTON has secured a five-year agreement with Nordic data center operator atNorth. The deal provides 2.2 megawatts of renewable-powered capacity for high-performance computing, aligning with the company’s focus on scalable and energy-efficient infrastructure.
Market performance has been volatile. AlphaTON shares were trading below $0.70 on Wednesday, up roughly 16% over the past month, according to Google Finance data. Despite the recent rebound, the stock remains down about 90% from early October levels, when it traded near $7 before a broad crypto market sell-off erased hundreds of billions of dollars in value.
Telegram’s native Toncoin (TON) has also declined over the same period, down approximately 38%, based on price data.
Taken together, AlphaTON’s latest announcements signal a strategic pivot toward operational AI revenue at a time of continued turbulence in both crypto and technology markets. As its GPU rollout progresses and partnerships take shape, investors will be watching closely to see whether this transition translates into sustained financial performance.
