Key Takeaways from Oblong’s Shareholder Letter

Oblong’s latest shareholder letter outlines a bold strategic pivot into the convergence of AI and blockchain through its investment in Bittensor ($TAO). The company highlights why TAO represents both a disruptive technological opportunity and a long-term value play, backed by scarcity, utility, and rapid adoption. Here are the main takeaways:

🔑 Takeaways

1. Strategic Investment in TAO

• Oblong raised $7 million and invested it entirely in Bittensor’s TAO token.
• The company currently owns 21,700 TAO, all actively staked in the network.
• Assets are safeguarded with BitGo’s institutional-grade infrastructure (cold storage, multisig wallets, penetration testing).

2. Why Bittensor & TAO?

• AI is the defining tech of our era, but currently dominated by centralized giants.
• Bittensor flips this model: a decentralized, community-driven AI network with no single gatekeeper.
• TAO is the fuel of the network, required for staking, rewards, and AI services.

3. Scarcity & Halving as Catalysts

• TAO has a hard cap of 21 million tokens.
• The first halving in December will cut the new supply in half, a proven price catalyst in crypto history.

4. Explosive Subnet Growth

• Nearly 130 subnets live, growing at 500% annually.
• Each subnet = a startup within Bittensor (e.g., language models, vision AI, financial predictions).
• Network effects (Metcalfe’s & Reed’s Laws) amplify value as more subnets launch and interconnect.

5. Market Opportunity

• The global AI market is projected to exceed $1 trillion.
• Bittensor positions TAO as the leading decentralized AI protocol within that trillion-dollar market.
• Early adoption parallels Bitcoin & Ethereum’s breakout phases, with similar upside potential.

6. Strategy Going Forward

• Hold & stake TAO to reinforce the network and earn rewards.
• Build partnerships with subnet teams to expand value.
• Long-term focus: weather short-term volatility to capture generational returns.

7. Leadership Commitment

• CEO has personally invested in TAO alongside the company.
• Emphasis on long-term value creation for shareholders through this strategic pivot.

Bottom Line: Oblong is betting big on Bittensor ($TAO) as the foundation of decentralized AI, positioning itself at the ground floor of what it believes will be a trillion-dollar market opportunity.

Read the full press release here.