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Oblong Inc. (OBLG) announced it has invested $7 million raised three months ago into TAO tokens, the cryptocurrency that powers the Bittensor decentralized artificial intelligence network. The company now holds more than 21,700 TAO tokens, all actively staked in the network.
In a letter to shareholders, CEO Pete Holst described the investment as part of the company’s pivot to become a digital asset treasury company focused on decentralized AI. The funds are stored using BitGo’s institutional infrastructure, including cold storage and multi-signature wallets.
TAO has a fixed supply limit of 21 million tokens. The cryptocurrency’s first halving event, which reduces new token issuance by half, is scheduled for December. Holst noted that TAO serves as fuel for the Bittensor economy, required for staking, earning rewards, and paying for AI services.
The Bittensor network currently operates nearly 130 subnets, which function as specialized AI development environments within the platform. According to the company, the number of subnets has increased by over 500% annually since launch.
Oblong’s strategy involves holding and staking its TAO tokens while seeking partnerships with subnet development teams. The company previously operated in different business areas before making this strategic shift toward cryptocurrency and AI investments.
The letter acknowledged potential volatility and technological challenges while positioning the investment as a long-term value creation strategy. Holst stated he has personally invested in the same vision.
The information comes from a shareholder letter issued by the company.