Oblong shifts focus to digital assets with $7 million TAO investment

DENVER - Oblong, Inc. (NASDAQ:OBLG), a micro-cap company with a market capitalization of $6.62 million, has invested $7 million to acquire more than 21,700 TAO tokens, the cryptocurrency that powers the Bittensor decentralized AI network, according to a shareholder letter released by the company. According to InvestingPro data, the stock has shown significant volatility in recent months.

The digital asset treasury company reported that all acquired tokens are actively staked on the network and secured through BitGo’s institutional-grade infrastructure, which includes cold storage with offline key management and multi-signature wallets. The company maintains a strong liquidity position with a current ratio of 7.21, indicating ample resources to meet short-term obligations.

In the letter, Oblong CEO Pete Holst described the investment as a strategic pivot toward decentralized artificial intelligence, citing TAO’s fixed supply cap of 21 million tokens and upcoming halving event in December 2025.

"We’re not just investing in an asset — we’re investing in the foundation of the next wave of AI," Holst stated in the shareholder communication.

The company highlighted Bittensor’s growth metrics, noting that nearly 130 subnets are currently operational on the network, representing what Oblong characterized as a 500% annual increase since launch.

Oblong’s strategy involves holding and staking its TAO tokens while seeking partnerships with subnet teams. The company acknowledged that volatility is expected as the technology remains in preliminary stages.

Previously known for its collaboration solutions, Oblong has repositioned itself as a digital asset treasury company focused on decentralized AI. The strategic shift comes after the company raised $7 million three months ago, directing the entire amount toward its TAO investment. While the company’s revenue has declined by 22.86% over the last twelve months, InvestingPro analysis suggests the stock may be undervalued at current levels. Subscribers can access 8 additional ProTips and comprehensive financial metrics to better evaluate this strategic pivot.

The information in this article is based on a company press release statement.

In other recent news, Oblong Inc. has made significant strides in its strategic shift toward decentralized artificial intelligence. The company announced the acquisition of 5,025 TAO tokens for $1.65 million, marking a pivotal step in this direction. This investment was made using funds from its recent $7.5 million financing. Oblong has fully staked these tokens in the Bittensor network, a decentralized platform for AI and machine learning development. This move aligns with the company’s previously stated strategy to focus on decentralized AI assets. Additionally, Oblong has appointed Siam Kidd, Co-Founder and Chief Investment Officer of DSV Fund, to its newly formed Advisory Committee. Kidd will offer guidance on Oblong’s treasury investments in Bittensor. With over 21 years of experience in financial markets, Kidd brings expertise in mergers, acquisitions, and hedge fund management.

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