Oblong Announces $7.5 Million Private Placement to Propel Bittensor-Centric AI and Digital Asset Strategy
Oblong, Inc. (Nasdaq: OBLG), a technology services provider specializing in innovative IT solutions, has announced a strategic move into the decentralized artificial intelligence (AI) space through a $7.5 million private placement. The company has entered into a securities purchase agreement to sell 1,989,392 shares of common stock (or equivalent securities) at $3.77 per share, priced at-the-market under Nasdaq rules. This offering, led by institutional investors focused on emerging technologies, is expected to close on or around June 11, 2025, subject to customary closing conditions.
The capital raised will position Oblong as a pioneer in the rapidly growing ecosystem of Bittensor ($TAO), a decentralized intelligence protocol that is reshaping the future of AI infrastructure. By leveraging this funding, Oblong plans to acquire $TAO tokens, invest in software development, and build tools that enhance the Bittensor network while generating token-based revenue streams. This marks a bold step into the next evolution of the internet: permissionless intelligence.
A Strategic Leap into Decentralized Intelligence
Peter Holst, Chief Executive Officer of Oblong, emphasized the transformative potential of Bittensor: “Bittensor is an open network for intelligence, much like the original internet was for information. By building on this open platform, problems can be solved collaboratively at a global scale, with the world’s brightest minds incentivized by $TAO. With over 25 years of experience scaling technology businesses, we believe we are uniquely positioned to capitalize on this next major inflection point in AI and digital infrastructure.”
Oblong’s entry into the $TAO ecosystem underscores its commitment to advancing decentralized AI—a paradigm shift that democratizes access to intelligence, akin to creating an “OpenAI for the world.” The company plans to allocate the majority of proceeds toward acquiring $TAO tokens and contributing to Bittensor’s decentralized AI marketplace, which supports compute, inference, data, and model training. This architecture empowers developers and contributors worldwide, fostering innovation without the constraints of centralized control.
In addition to acquiring $TAO, Oblong intends to participate actively in subnet 0, a core component of the Bittensor network, to generate yield on a portion of its holdings. The company’s confidence in $TAO stems from its robust tokenomics: no venture capital allocations, no insider privileges, and no vesting cliffs that distort market value. This transparent and deflationary model mirrors Bitcoin’s scarcity-driven design, making $TAO a rare asset with long-term value retention.
Unlocking the Potential of AI and Digital Assets
Oblong views the convergence of AI and digital assets as the third great era of cryptocurrency, following Bitcoin and smart contract platforms like Ethereum and Solana. Just as those phases delivered generational opportunities, the AI x crypto era offers similar upside—and Bittensor is leading the charge.
$TAO is the premier Layer 1 asset in the AI digital asset space, boasting a rapidly expanding ecosystem of subnets, applications, and contributors. With a market capitalization of approximately $3 billion and strong fundamentals, $TAO is poised to define this new category. Its capped supply of 21 million tokens, coupled with quadrennial halving events, ensures scarcity and aligns it with Bitcoin’s proven economic principles.
Bittensor’s decentralized approach challenges the dominance of centralized AI platforms by incentivizing computational contributors in a permissionless environment. This collaborative framework enables global participation, driving innovation and efficiency in AI development. Oblong’s strategic focus on $TAO reflects its belief that decentralized AI infrastructure represents the next frontier of software development, digital monetization, and investor opportunity.
Strengthening Oblong’s Position in the Market
As of March 31, 2025, Oblong reported $4.3 million in cash and no debt, providing a solid foundation for its ambitious plans. The company intends to use the net proceeds from the private placement to execute its Bittensor-centric strategy, including:
- Acquiring $TAO tokens to establish a long-term cryptocurrency treasury.
- Developing software tools that address infrastructure challenges within the Bittensor ecosystem.
- Generating token-based revenue streams through active participation in the network.
This multifaceted approach positions Oblong as both a contributor to and beneficiary of the decentralized AI revolution. By aligning itself with $TAO’s transparent and deflationary tokenomics, Oblong aims to create sustainable value for its shareholders while advancing the broader adoption of decentralized intelligence.
Institutional Support and Legal Framework
Dawson James Securities, Inc. is acting as the exclusive placement agent for the offering. The gross proceeds are expected to total approximately $7.5 million, before deducting placement agent fees and other offering expenses. Oblong has committed to filing a registration statement with the Securities and Exchange Commission (SEC) to cover the resale of the shares issued in the private placement, ensuring compliance with regulatory requirements.
It is important to note that this press release does not constitute an offer to sell or the solicitation of an offer to buy any securities. No sale of these securities will occur in any jurisdiction where such an offer, solicitation, or sale would be unlawful prior to registration or qualification under applicable securities laws.
About Oblong, Inc.
Oblong (Nasdaq: OBLG) provides innovative and patented technologies that change how people work, create, and communicate. Oblong’s product Mezzanine™ is a remote meeting technology platform that offers simultaneous content sharing to achieve situational awareness for both in-room and remote collaborators. Oblong supplies Mezzanine systems to Fortune 500 and enterprise customers. For more information, visit www.oblong.com.
