AlphaTON Capital Corp. (NASDAQ: ATON) has announced that Telegram's Cocoon AI network has commenced generating revenue, marking a strategic pivot for the public company from managing a passive token treasury to operating active, revenue-producing AI infrastructure. This development follows AlphaTON's previously announced $46 million compute infrastructure deal tied to Cocoon, Telegram's confidential compute network built on the TON blockchain.
In a series of press releases, AlphaTON disclosed that it began producing revenue in December after deploying its initial fleet of GPUs to support AI inference workloads on the Cocoon network. The company has since expanded its footprint with additional high-performance chips and is scaling toward a planned deployment of more than 570 NVIDIA B300 GPUs, scheduled for delivery in March 2026.
While AlphaTON has not disclosed current revenue levels, it is projecting a 27% internal rate of return and over $11 million in net present value from the GPU infrastructure rollout. To fund this expansion, the company has raised a net $44 million in capital, including a $15 million registered direct offering priced at $1.00 per share. Proceeds are being directed primarily toward the AI infrastructure expansion and working capital.
AlphaTON is also expanding its partnership ecosystem. New deals include an agreement with the Midnight Foundation, which management expects will generate recurring monthly revenue from network participation. The company also launched an open-source "Claude Connector" that integrates Anthropic's AI models with the TON blockchain and Telegram. To support its long-term compute needs, AlphaTON has secured a five-year agreement with Nordic data center operator atNorth, providing 2.2 megawatts of renewable-powered capacity for high-performance computing.
Despite the positive operational updates, AlphaTON's stock was trading under $0.70, up about 16% over the past month but down roughly 90% from its early October levels near $7. The broader crypto market downturn in October 2025 contributed to this decline. Telegram's native Toncoin (TON) is also down approximately 38% over the same period.
