Oblong (OBLG) Announces 1.99M Share Private Placement at $3.77/sh

Oblong, Inc. (Nasdaq: OBLG) (“Oblong” or the “Company”), a technology services provider specializing in innovative IT solutions, today announced it has entered into a securities purchase agreement to raise approximately $7.5 million through the sale of 1,989,392 shares of common stock (or common stock equivalents in lieu thereof) at $3.77 per share in a private placement priced at-the-market under Nasdaq rules. The offering, led by institutional investors focused on emerging technology, is expected to close on or about June 11, 2025, subject to customary closing conditions.

Oblong is strategically allocating capital to enter the AI-driven digital asset space through the accumulation of $TAO, the native token of Bittensor—a decentralized intelligence protocol. The Company’s transition will be supported by software development initiatives that actively enhance this emerging ecosystem. Oblong is embracing the next evolution of the internet: permissionless intelligence.

“Bittensor is an open network for intelligence, the same way the original internet was for information,” said Peter Holst, Chief Executive Officer of Oblong. “By building on this open platform, problems can be solved collaboratively at 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.”

Technology-First Strategy in the $TAO Ecosystem

Oblong will allocate the majority of proceeds toward acquiring $TAO tokens and contributing to Bittensor’s decentralized AI network—an open marketplace for compute, inference, data, and model training. This architecture democratizes access to intelligence, much like an OpenAI for the world. In addition to the proceeds from the private placement, the Company had $4.3 million in cash and no debt as of March 31, 2025, and intends on making significant investments in building software tools that drive usage and solve infrastructure challenges within the network. Additionally, Oblong’s strategy will include participating in subnet 0, achieving a yield on a portion of its $TAO holdings. The Company’s approach is anchored in confidence around $TAO’s tokenomics—no venture capital, no insider allocations, and no vesting cliffs that distort market value. This rare structure gives Oblong confidence to accumulate $TAO for the long term, unlike most altcoins, which fail to store value relative to Bitcoin.

Strategic Rationale and Market Opportunity

Oblong believes the fusion of artificial intelligence and digital assets marks the third great era of crypto, following Bitcoin and smart contract infrastructure (L1’s like Ethereum and Solana). Just as those phases delivered generational upside, this AI x crypto era offers similar potential—and Bittensor is at the forefront.

$TAO is the leading Layer 1 asset in the AI digital asset space, with a rapidly growing ecosystem of subnets, applications, and contributors. With a market capitalization of approximately $3 billion and strong fundamentals, the Company believes $TAO is positioned to be the defining asset of this new category.

Why $TAO and Bittensor

Bittensor’s $TAO is a Layer 1 cryptocurrency—akin to Ethereum, Bitcoin, and Solana—but differentiated by its foundational role in creating a global intelligence market. By rewarding computational contributors in a permissionless environment, Bittensor enables collaborative, decentralized AI that challenges the dominance of centralized platforms.

With a capped supply of 21 million tokens and quadrennial halving events, $TAO mirrors Bitcoin’s scarcity-driven model. Its deflationary design, transparent issuance schedule, and absence of insider holdings provide a credible long-term value proposition.

The Company’s strategic focus on $TAO reflects its conviction that decentralized AI infrastructure will be the next frontier of software development, digital monetization, and investor opportunity.

For more information about Oblong’s strategy, please review our Summary Investment Thesis filed as an exhibit to the Company’s Current Report on Form 8-K, which will be filed substantially concurrently with the issuance of this press release.

Dawson James Securities, Inc. is acting as the exclusive placement agent for the offering.

The gross proceeds from the offering are expected to be approximately $7.5 million, prior to deducting placement agent’s fees and other offering expenses payable by the Company. The Company intends to use the net proceeds from the offering to launch its Bittensor-centric AI and digital asset strategy.

You May Also Be Interested In

• OpenAI: after the Hugging Face incident, we committed to conducting a much broader review of actions taken by our models
• KKR reports over $750M in Q3 monetization activity
• HeartSciences (HSCS) files $200M mixed shelf