xTAO becomes biggest publicly traded holder of AI-focused Bittensor (TAO) token

xTAO Inc. announced a significant expansion of its holdings of the Bittensor token, in a bet on AI infrastructure.

Summary

• xTAO revealed it is the biggest holder of TAO
• The firm is betting on AI infrastructure on-chain
• Big cash reserves enable it to acquire more TAO

Companies are increasingly betting on the convergence between AI and blockchain. On Wednesday, July 30, xTAO revealed that it holds a total of 41,538 Bittensor (TAO) tokens. According to the firm, these assets make it the biggest corporate holder of the AI-focused TAO token.

According to the firm, the TAO treasury will enable it to expand its validator operations, as well as to play a bigger role in the Bittensor network infrastructure. The company plans to earn an annual yield of 10 percent on its staked TAO, although it acknowledges that the dollar yield will largely depend on the token’s price performance.

xTAO also revealed that it holds “substantial” cash reserves, which enable it to further expand its TAO holdings. Currently, TAO trades at $371.90, after correcting from the monthly high of $459.73. The token is down 51% from its all-time high in April 2024.

xTAO bets on AI infrastructure on-chain

xTAO went public on July 22 on the TSX Venture Exchange, under the ticker XTAO.U. Despite its listing on a Canadian exchange, the firm will be traded in US dollars. According to the company, its exclusive focus will be on the Bittensor ecosystem and its decentralized AI infrastructure.

The firm obtained $22.8 million subscription‑receipt financing from Digital Currency Group, Animoca Brands, Arca, Borderless Capital, and FalconX, among others.