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DENVER - Oblong, Inc. (NASDAQ:OBLG), a micro-cap technology company with a market capitalization of approximately $5 million, has announced its strategic entry into the artificial intelligence (AI) sector by investing in the Bittensor ecosystem, utilizing its native token, $TAO. According to InvestingPro analysis, the company appears undervalued relative to its Fair Value, despite facing significant volatility with a beta of 4.17. The company has raised approximately $7.5 million through a private placement of common stock, which is expected to close on or about June 11, 2025.
The capital raised will support Oblong’s venture into the permissionless intelligence infrastructure by funding cryptocurrency treasury, software development, and token-based revenue streams. Oblong’s CEO, Peter Holst, highlighted the company’s 25-year experience in scaling technology businesses as a foundation for success in the AI and digital infrastructure space.
Oblong plans to use the majority of the proceeds to acquire $TAO tokens and contribute to Bittensor’s decentralized AI network, which aims to democratize access to intelligence. With $4.3 million in cash and no debt as of March 31, 2025, Oblong intends to make significant investments in developing software tools to enhance the Bittensor network and participate in subnet 0, generating yield on its $TAO holdings. InvestingPro data confirms the company’s strong liquidity position, with a healthy current ratio of 3.38 and liquid assets exceeding short-term obligations. However, the company faces challenges, with revenue declining by 30% in the last twelve months. Want deeper insights? InvestingPro offers 8 additional key tips about OBLG’s financial position.
The company’s confidence in $TAO stems from its unique tokenomics, which include no venture capital, no insider allocations, and no vesting cliffs that could distort market value. Oblong views the fusion of AI and digital assets as the third great era of crypto and sees $TAO as a leading Layer 1 asset in the AI digital asset space, with a market capitalization of approximately $3 billion.
Bittensor’s $TAO token is designed to create a global intelligence market, rewarding computational contributors in a permissionless environment. Its scarcity-driven model, deflationary design, and transparent issuance schedule are seen as providing a credible long-term value proposition.
Dawson James Securities, Inc. is serving as the exclusive placement agent for the offering. The funds from the offering are earmarked for launching Oblong’s Bittensor-centric AI and digital asset strategy.
The securities offered have not been registered under the Securities Act or state securities laws and may not be sold in the United States without registration or an exemption from registration requirements. Oblong has committed to filing a registration statement with the Securities and Exchange Commission for the resale of the common stock sold in the private placement.
This article is based on a press release statement from Oblong, Inc. and does not constitute an endorsement of the company or its investments. InvestingPro rates Oblong’s overall financial health as ’Fair’, with particular concerns about profitability but stronger scores in growth potential. For comprehensive analysis of similar investment opportunities, explore InvestingPro’s advanced stock screener and detailed financial metrics.
In other recent news, Oblong, Inc. has announced a stock buyback program authorizing the repurchase of up to $500,000 of its common stock. This move could potentially allow the company to reclaim about 25% of its shares based on current market prices and its roughly 1.1 million shares outstanding. Oblong’s CEO, Peter Holst, expressed confidence in the company’s intrinsic value and reiterated its commitment to shareholders. As of December 31, 2024, the company maintains a solid financial position with $5.0 million in cash and no debt, allowing it to leverage its balance sheet strength for opportunistic share repurchases. The buyback program will be funded through existing cash or future cash flows and may be conducted in compliance with securities laws. Oblong remains focused on a disciplined merger and acquisition strategy, targeting SaaS businesses and companies benefiting from AI-driven automation and predictive analytics. Despite challenging market conditions, the company is dedicated to identifying prospects that align with its vision for innovation and value creation. The stock buyback program reflects Oblong’s proactive approach to enhancing shareholder value while continuing to explore M&A opportunities.
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