OBLG

Oblong ($OBLG) Executives Buy Aggressively Despite 80% Stock Crash - Hidden Conviction Behind AI Pivot Bet

11/19/2025 20:21

Oblong Inc's ($OBLG) executives refuse to stop buying shares even as the stock plummets. Between September and November 2025, directors and the president have concentrated their purchases, acquiring a total of 50,000 shares worth $114,000. This Denver-based small-cap technology company originally operated 'Mezzanine,' a video conferencing collaboration platform as a traditional software company. However, following a $7.5 million private placement in June 2025, the company executed a dramatic business transformation. It pivoted to become a digital asset treasury company focused on decentralized AI and blockchain technology, particularly Bittensor network's TAO tokens. The timing of insider purchases is particularly noteworthy. President Peter Holst bought 15,000 shares across two transactions on November 14th and 19th, while Director Jonathan Schechter purchased 25,000 shares total in September and November. Their average purchase prices ranged from $1.84 to $2.73 per share, near the current stock price of $2.69 (as of September 17th). Despite the stock's nearly 80% decline from its June 2024 peak of $12.4, management showed strong conviction. Oblong's business model transformation goes beyond simple diversification. The company currently holds over 21,800 TAO tokens, which are staked on the Bittensor network generating a 6% annual yield. In Q3 alone, these staking rewards generated $97,000 in revenue. Including digital asset value of $6.6 million, total liquid assets exceed $10 million. Financially, challenges remain. Q3 revenue increased only 4% year-over-year to $600,000, and net loss widened to $2.3 million due to a $1.5 million TAO token revaluation loss. However, adjusted EBITDA loss improved 26% year-over-year to $700,000. Most importantly, the company maintains a debt-free balance sheet with $3.74 million in cash and a current ratio of 10.18, providing solid financial foundation during this transition period. Investors should watch the upcoming December 2025 Bittensor block reward halving event. This could drive TAO token value higher by reducing supply, but may also decrease staking yields. Additionally, management has indicated active exploration of M&A opportunities in SaaS, digital currency, and AI sectors, suggesting potential further expansion. In a positive scenario, the AI boom and decentralized technology adoption could drive TAO token values significantly higher, generating substantial returns on the company's digital asset portfolio. The stock trades at 64% of book value, suggesting significant asset revaluation potential. Insider buying and a $500,000 share buyback program demonstrate strong management confidence. Risk scenarios include cryptocurrency market volatility directly impacting asset values and continued weakness in the legacy collaboration software business accelerating cash burn. As a micro-cap with $6 million market cap, liquidity constraints and high volatility must be considered. Overall, Oblong represents a bold digital transformation case study, offering both significant upside potential and considerable risk. Continuous insider buying suggests management views current prices as undervalued. However, the success of the business model transition and cryptocurrency market trends will largely determine outcomes, requiring careful investment approach.