(Alliance News) – TAO Alpha PLC on Wednesday confirmed execution of a GBP5 million fundraising deal, amid the firm’s adoption of a bitcoin treasury in Singapore.
The London-based company develops subnet infrastructure, where artificial intelligence is used for the purposes of cryptocurrency trading.
TAO Alpha notified the market of the deal on Tuesday morning, whilst waiting for the final signature from its investor syndicate. The firm’s shares were up more than fourfold on Tuesday, prompting a statement from TAO that it had “no reason to believe there [were] any leaks” related to the deal.
Its shares were down 3.1% at 5.00 pence each on Wednesday around midday in London.
Proceeds from the fundraise are due to clear within three to five business days, TAO noted. Of the total amount, two-thirds, or GBP3.3 million, will be allocated to TAO’s bitcoin treasury. Adoption of the new cryptocurrency-led policy will be overseen by Singaporean subsidiary TAO Alpha PTE Ltd, according to Tuesday’s announcement.
Funds will also be used to hire more staff. As of Wednesday, TAO has only one full-time developer, it said.
The firm, already listed in London, has applied for admission to the OTCQB, with a decision expected in 30 days. TAO asserted that a place on the OTCQB will provide exposure to the US market and its generally pro-cryptocurrency sentiment.
“The OTC application will allow TAO Alpha to further unlock the potential of the platform with greater engagement in the US markets given their continued adoption of the type of work that TAO Alpha does,” commented Chief Executive Matthew Lodge.
Additionally, TAO noted a partnership with Tiger Royalties & Investments PLC, a London-based investor in “utility” meme coins focused on “real-world” applications.
Back in May, Tiger Royalties bought the Tiger Alpha subnet, which is managed on TAO’s Bittensor network, and where TAO is the native cryptocurrency. It is currently producing over six TAO per day, or USD2,300 USD, for a monthly run rate of USD70,000, according to TAO’s estimates.
Under the partnership, TAO will continue to provide digital infrastructure and “accelerate the revenue of the Tiger subnet” in return for a 20% cut.
“The subnet has been live for only four weeks and is a great example of the scalable revenue opportunities available to TAO Alpha as it expands its development efforts across multiple subnets,” TAO commented.
“The early revenue traction on the Tiger Alpha subnet is an exciting milestone for the Company and begins to prove the economic model for decentralized AI on the Bittensor network.”
Tiger Chief Executive Jonathan Bixby added: “Controlling the Tiger subnet lets us capture scalable protocol fees, earn TAO rewards and steer compute power toward high-value AI services.”
By Holly Munks, Alliance News reporter
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