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NEW YORK - TAO Synergies Inc. (NASDAQ:TAOX) has invested $750,000 in Yuma Asset Management's Bittensor Subnet Funds, the company announced Tuesday. The micro-cap company, with a market capitalization of just $39 million, has seen its stock surge 178% over the past year according to InvestingPro data.
The investment is split equally between the Yuma Subnet Composite Fund and the Yuma Large Cap Subnet Fund, with $375,000 allocated to each. This move expands TAO Synergies' exposure to subnets within the Bittensor ecosystem, a network focused on decentralized artificial intelligence. The company's strong financial position, with a current ratio of 20.51, provides ample liquidity for such strategic investments.
TAO Synergies, which describes itself as the largest publicly traded holder of Bittensor's native TAO token with over 60,000 TAO staked as of last week, aims to enhance its position in the decentralized AI space through this investment. InvestingPro analysis indicates the company is trading close to its Fair Value despite its volatile price movements, with a beta of 2.04 reflecting higher market sensitivity than average.
"We're investing in Yuma's subnet funds because they represent a smart, low-friction way to amplify our TAO holdings with targeted exposure to the ecosystem's real innovators," said James Altucher, Digital Asset Treasury Strategist at TAO Synergies.
The Yuma Subnet Composite Fund provides market-cap weighted exposure across all active subnets in the Bittensor network, while the Large Cap Subnet Fund focuses on top-performing active subnets in areas including AI coding, inference, and natural language processing.
Yuma Asset Management, which received a $10 million anchor investment from DCG at launch, offers institutional investors access to subnet tokens, which the company describes as a new asset class native to Bittensor.
Barry Silbert, Founder and CEO of Yuma and DCG, stated that TAO Synergies' investment "validates the opportunity in Bittensor subnets."
The company noted in its press release statement that investments in subnet tokens involve substantial risks, including price volatility, liquidity constraints, and potential technological failures. This caution comes as TAOX itself has experienced dramatic price swings, with a remarkable 227% gain over the past six months despite not being profitable over the last twelve months. Investors seeking deeper insights into volatile tech stocks can access additional ProTips and financial metrics through InvestingPro.
In other recent news, TAO Synergies Inc. has announced an increase in its holdings of Bittensor tokens to a total of 54,058. This development strengthens TAO Synergies' status as the largest publicly traded pure-play holder of the cryptocurrency associated with decentralized artificial intelligence. The company has been expanding its token holdings through acquisition and staking activities. Additionally, TAO Synergies recently raised $11 million in a private placement, backed by investors including DCG and Digital Strategy Advisor James Altucher, although these funds have not yet been deployed. The company's focus remains on enhancing its position within the Bittensor ecosystem. These recent developments reflect TAO Synergies' ongoing strategy to solidify its presence in the digital asset space.
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