xTAO Inc. (XTAIF*) — Important Numbers & Near-Term Catalysts

Snapshot based on figures supplied as of August 21, 2026

MACD (not shown) is on a buy signal with our LOTM CIF Fundamental Analytics saying the shares are “Too Cheap.”

xTAO Inc. (XTAIF*) is a classic LOTM WormHole Idea. It is illiquid, undiscovered, healthy with no debt & worth more dead than alive if they liquidated the company today. All it needs is time to grow larger, an up-listing to a USA trading exchange and a healthy AI/Crypto/Blockchain market environment. Our recently developed, CIF / WormHole screening process, places above average probability that the company will succeed and has “potential” for 10X to 20X price appreciation within a 48-month timeline. That is not investment advice or any sort of guarantee – Just a personal opinion.

This is a Venture Capital style idea. We buy early using our CIF/WormHole screening for asymmetric appreciation – which we call “finding the WormHole” to zip through to much higher values. The hardest part is the waiting. It is not for everyone. Our personal focus and identify is to accumulate leading companies in rapid-growth industries while also positioning in selected asymmetric opportunities within those industries . I cannot think of a better industry or on the timing for owning such an industry, than the AI/Crypto/Blockchain and the Gold silver copper & Critical Minerals industries.

Capital Structure & Valuation

Important position management comment for Venture Style Investing: Sell 70% to 100% of cost on the first double. Ride the remaining shares as long as you can stand the pressure of not knowing how big & high this stock is going.

Share Repurchase Program

• A share buyback program has been announced with $1.5 million allocated for repurchases.

• If repurchases have been executed, the next reported share count should be modestly lower than the 28.5 million shares outstanding at June 30, 2026.

BitTensor (TAO) Treasury Position

• TAO tokens owned as of mid-July 2026: 61,135.
• TAO reference price on August 21, 2026: approximately $225 per token.
• Estimated value of TAO holdings: is $13.75 million (61,135 × $225).
• The TAO position is an asset with no corresponding debt liability.
• Hard-asset comparison: approximately $13.75 million of TAO value versus approximately $8.0 million of enterprise value.
• On this simplified comparison, the estimated TAO liquidation value is approximately 72% above the stated enterprise value.
• TAO holdings are staked and used for validation, with an indicated annualized yield of approximately 9%.

Near-Term Catalysts

1. Q1 FY2027 Earnings: Expected August 28, 2026, after market close.

2. Share Count Reduction: Potentially fewer shares outstanding as the announced repurchase program is implemented.

3. Growth in TAO Holdings: Staking and validation rewards are expected to increase the number of Bittensor tokens owned over time.

4. Potential BitTensor ETF Approvals: Anticipated decisions involving proposed Bitwise and Grayscale products designed to accumulate or provide exposure to Bittensor (TAO), with an expected approval window cited as roughly the next 10–60 days.

Valuation Snapshot

At the supplied August 21 figures, XTAIF’s estimated $8.0 million enterprise value is materially below the approximately $13.75 million market value of its TAO treasury alone. This does not assign value to the operating platform, staking/validation income, future treasury growth, or other corporate assets and liabilities beyond the simplified inputs above.

LOTM COMMENT: BitTensor (TAO), the asset owned by XTAIF, is participating in the Crypto rally kicked off by President Trump’s August 17, 2026, Crypto meeting and press announcements. TAO is up 12.5% this week. It is our feeling that the publicity generated by what appears to be a new crypto rally phase, XTAIF’s earnings announcement on August 28^th and the potential approval of two new Bittensor ETFs will draw attention to XTAIF.

Technical Comment on TAO: Price and the 20-day moving average have crossed above the 50-day MA. A short-term buy signal.

MACD and Chaikin Money Flows (CMF), not shown, are also on buy-signals.

The question – now that in the short-term that TAO is on buy-signals, how high and how long will the trend continue?

NOTICE: LOTM will stop making public idea postings on-line or by email. Our concentration is on compounding our personal and related accounts and working for private clients. We are open for new business but focusing our time and energy in having a public presence – towards the market. We appreciate those of you who have been reading this. I’m always open for conversation. Good luck to us all.

T.

Important Note

This document is a concise valuation snapshot prepared from figures supplied by the requester. TAO prices, share prices, cash balances, shares outstanding, staking yields, buyback activity, ETF timing, and enterprise value can change materially. The ETF catalyst is anticipatory and should not be treated as an approval certainty. This is not investment advice.

LOTM Research & Consulting Service
* An account related to LOTM holds a position in this security.
Neither LOTM nor Tom Linzmeier is a Registered Investment Advisor.
Please refer to our web site for full disclosure at www.LivingOffTheMarket.com ZTA Capital Group, Inc.
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