TAO Synergies closed a securities purchase agreement on Monday to raise $11 million through the sale of newly issued convertible preferred stock, with DCG joining as a new investor.
The Bittensor-focused treasury company sold 11,000 shares of Series E convertible preferred stock at $1,000 per share. Each share converts into common stock at a conversion price of $8.
Existing investors participated alongside digital asset strategy advisor James Altucher and new investor DCG. The transaction is expected to close around Oct. 15, 2025, pending standard closing conditions.
Altucher stated the financing supports TAO Synergies' continuing strategic investments in TAO tokens and opportunities to generate revenue within the Bittensor ecosystem. The company stakes all acquired tokens to earn network rewards.
TAO Synergies rebranded from biotech firm Synaptogenix in June and changed its ticker to TAOX as part of its pivot toward a Bittensor strategy. The company now operates as the largest publicly traded holder of Bittensor tokens.
The firm currently holds 42,111 $TAO worth over $18.2 million according to TAO Treasuries data. Two other Bittensor treasury companies, xTAO Inc. and Oblong, also operate in the space.
Bittensor functions as a platform combining AI and cryptocurrency through incentive mechanisms. Users contribute intelligence to improve AI systems and receive TAO tokens based on the utility of their input, enabling permissionless coordination of AI development.
TAO Synergies shares surged 38.46% to $9.54 on Monday, though the financing announcement came after markets closed. The company's market capitalization reached $33.27 million, with its stock climbing 60% over the past month.