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DENVER - Oblong, Inc. (NASDAQ:OBLG), a micro-cap company with a market value of $12.36 million, has acquired 5,025 TAO tokens for $1.65 million using proceeds from its recent $7.5 million financing, the company announced Tuesday. The purchase, at an average price of $328.38 per token, represents the first major step in Oblong’s previously announced pivot toward decentralized artificial intelligence. According to InvestingPro data, the company maintains a strong liquidity position with more cash than debt on its balance sheet.
The company has fully staked all acquired tokens in the Bittensor network, a decentralized blockchain platform for machine learning and AI development. This move follows Oblong’s June 6 announcement of its strategic shift toward decentralized AI assets. With a high beta of 4.17, InvestingPro analysis shows the stock exhibits significant volatility compared to the broader market.
"The TAO investment underscores Oblong’s focus on Bittensor’s decentralized AI protocol, which fosters global collaboration in machine learning," said Peter Holst, CEO of Oblong, according to the press release.
The company indicated this purchase is the first of several planned investments in the Bittensor ecosystem, with additional TAO purchases being evaluated on a weekly basis. Oblong is also exploring potential partnerships within the Bittensor ecosystem to develop technology offerings.
Oblong plans to provide updates on its treasury performance, including staking yields and token holdings, in its upcoming Q2 2025 earnings results and at future investor conferences.
Formerly focused on video collaboration solutions through its Mezzanine product line, Oblong is now building a cryptocurrency treasury centered on decentralized AI while maintaining its existing business operations. The strategic pivot comes as the company faces challenging business conditions, with revenue declining by 30% in the last twelve months. Discover more detailed financial insights and 7 additional key tips for OBLG with InvestingPro.
The information in this article is based on a company press release statement.
In other recent news, Oblong, Inc. has announced its strategic investment into the AI sector by raising approximately $7.5 million through a private placement of common stock. This capital will support Oblong’s venture into the Bittensor ecosystem, focusing on cryptocurrency treasury and token-based revenue streams. The company plans to acquire $TAO tokens and contribute to Bittensor’s decentralized AI network. Oblong’s CEO, Peter Holst, emphasized the company’s 25-year experience in scaling technology businesses as a foundation for success in this new venture. Additionally, Oblong has launched a stock buyback program, authorizing the repurchase of up to $500,000 of its common stock. This initiative reflects Oblong’s confidence in its intrinsic value and commitment to enhancing shareholder value. The stock buyback will be funded through existing cash balances, with Oblong reporting $5.0 million in cash and no debt as of December 31, 2024. Oblong remains focused on a disciplined M&A strategy, targeting SaaS businesses and companies that can benefit from AI-driven automation.
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