OBLG

Oblong ($OBLG) Insiders Buy Aggressively as Stock Plunges 75%, $8M TAO Token Bet in Focus

11/17/2025 18:16

Oblong ($OBLG) insiders have been aggressively buying shares amid the stock's dramatic decline, sending a powerful signal about their confidence in the company's bold transformation from traditional collaboration software to a digital asset treasury focused on decentralized AI. Oblong, headquartered in Denver, Colorado, was founded in 2000 as a technology company specializing in multi-stream collaboration products and managed services. Its flagship product, Mezzanine, is a visual collaboration platform serving diverse sectors including aerospace, consulting, media, legal, insurance, technology, financial services, education, healthcare, and real estate. However, in 2025, the company embarked on a complete strategic pivot toward becoming a digital asset treasury company focused on decentralized artificial intelligence and blockchain technologies. The recent insider trading activity tells a compelling story. Director Jonathan Schechter has purchased a total of 25,000 shares across multiple transactions in September and November, including a notable 10,000-share purchase at $1.91 per share on November 14. On the same day, President Peter Holst bought 10,000 shares at $1.84 per share. These purchases came as the stock had fallen over 50% year-to-date, making the timing particularly significant. Director Jason Adelman also purchased 10,000 shares in September at $2.66 per share. Remarkably, the data shows six insider purchases with zero sales over the past six months. The company's core strategy revolves around substantial investments in the Bittensor decentralized AI network and its native cryptocurrency, TAO tokens. Oblong currently holds over 21,700 TAO tokens worth approximately $8 million, all of which are fully staked to generate approximately 6% annualized yield. This staking operation alone provides meaningful cash flow generation. To fund this AI and blockchain strategy, the company successfully raised $7.5 million in a private placement in June 2025. However, the stock price tells a different story, having plummeted approximately 75% from $10.00 in June 2024 to the current level around $2.69. Revenue declined 37.6% year-over-year to $2.38 million, while net losses expanded to $13.11 million. The decline in traditional collaboration product revenue has been the primary driver, though Q3 results were further impacted by a $1.5 million TAO token revaluation loss. Why are insiders buying aggressively despite these challenges? First, the upcoming TAO token halving event scheduled for mid-December 2025 represents a significant catalyst. Like Bitcoin, halving events typically create upward price pressure by reducing token supply. Second, the company maintains a debt-free balance sheet with $3.74 million in cash plus TAO token holdings, creating total liquid assets worth approximately $10.3 million. Finally, insiders appear to have strong conviction about the long-term potential of the Bittensor network itself. Investors should monitor several specific metrics. If TAO token prices rise 50% or more from current levels, the company's digital asset value alone could exceed its current market capitalization significantly. The staking rewards generate approximately $480,000 annually, which is meaningful compared to current quarterly losses. Conversely, if TAO tokens decline 30% or more, or if technical issues emerge with the Bittensor network, the investment thesis could be severely challenged. Looking ahead, the optimistic scenario involves the December halving event driving TAO token appreciation while the Bittensor network continues expanding, creating both asset appreciation and increased staking yields. The most likely base case scenario involves continued near-term volatility but gradual recovery alongside broader AI and blockchain sector growth. However, the high dependence on TAO tokens means regulatory risks or broader cryptocurrency market weakness could create additional downward pressure. Crucially, this is a micro-cap stock with a market capitalization of just $5.77 million and average daily volume of 87,440 shares, meaning limited liquidity and high sensitivity to any positive or negative developments. This concentration risk could work both ways – while it amplifies volatility, it also magnifies potential returns if the business transformation succeeds. Ultimately, Oblong represents a classic high-risk, high-reward investment opportunity. The recent insider buying provides encouraging validation, but the company's success hinges entirely on the performance of TAO tokens and the broader Bittensor network. For risk-tolerant investors seeking exposure to AI and blockchain technologies at a potentially discounted valuation, this could represent an intriguing opportunity. For conservative investors, it remains a situation requiring careful monitoring from the sidelines.