17th Jun 2025 13:21
(Alliance News) - Tao Alpha PLC on Tuesday reported that it had secured a GBP5 million loan, and adopted a cryptocurrency-led treasury policy in Singapore.
The London-based company develops subnet infrastructure, where artificial intelligence is used for the purposes of cryptocurrency trading.
Tao said it had established a Singaporean subsidiary called Tao Alpha PTE Ltd, which has adopted a defined bitcoin-led treasury policy. The plan is to hold up to two-thirds of Tao's cash in bitcoin and other "stable" cryptocurrencies which Tao considers liquid when compared to cash.
"The adoption of this treasury policy reflects the directors' ongoing belief that digital assets, including bitcoin, offer a reliable store of value and act as a hedge against inflation while also at times providing the possibility of value uplift. It also aligns the company with a number of other listed enterprises within both the digital assets sector as well as beyond," Tao said.
The move made sense, according to the company, given that Tao already has "ongoing intrinsic exposure to digital assets and the financial services around blockchain related validation".
In parallel with its adoption of bitcoin, Tao said it had agreed a GBP5 million convertible loan with an investor syndicate, though no specific companies or investors were named.
Part of the proceeds will be held in treasury, and part will go into current operations, to hire new developers and fund the expansion of Tao's Bittensor decentralised open-source network.
The loan has no special fees or interest, Tao said, apart from default interest if required. The investor syndicate has the right to appoint two directors, until the investment has been converted to equity, so that the investors hold 50% of Tao's board.
Tao said it is finalising execution of the loan, pending the last set of commitment documents, expected by close of business on Tuesday.
In an announcement released Tuesday morning, Tao noted: "The company is providing this update to the market in advance of the final signature given recent price-movements, although the directors have no reason to believe there have been any leaks associated with the details of this announcement."
Tao shares increased more than fourfold to 5.05 pence on Tuesday afternoon in London, for a market capitalisation of GBP26.6 million.
By Holly Munks, Alliance News reporter
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