$1.172 Million Sale Forces TaoWeave to Reduce $TAO Holdings Amid Financial Struggles

TaoWeave's long-term strategy is to accumulate Bittensor's $TAO token, but recent financial struggles have forced the company to sell a significant portion of its holdings. In its latest quarterly filing, TaoWeave revealed that it sold 3,959.23 TAO tokens in the first half of 2026, raising $1.172 million and resulting in a net realized loss of $114,000.

The sales are a departure from the company's previous plan to direct most of a $7.5 million private placement toward acquiring $TAO and supporting Bittensor. Instead, TaoWeave used the funds to cover operating expenses and manage liquidity, leaving its balance sheet concentrated in one volatile token.

TaoWeave held 23,335.18 TAO worth $4.709 million at June 30, about 69.5% of its $6.776 million in total assets. The company staked all of its holdings through custodians BitGo and Kraken but did not hedge its exposure or hold any other digital assets.

The sales left TaoWeave's balance down 1,330.26 TAO, or 5.4%, from year-end. With $735,000 in cash on hand, the company expects to sell more TAO tokens as operating needs require, with the amount and timing depending on cash needs, market prices, and liquidity.