SUMMARY:
- BitTensor – Cash Flows have Started and It’s a Big Deal
- xTAO Inc – The BitTensor Treasury Company to Own.
- Leadership matters and xTAO Inc has strong leadership in Karia Samaroo
INTRO:
We keep building on our xTAO Inc (XTAIF*) position and share what we define as a high-quality founder/leader in Karia Samaroo – because this is a low risk company but high volatility stock opportunity. xTAO Inc has no debt and is trading at or slightly below the value of assets held while earning about 8% annually on those same assets.
Bittensor (TAO*) altcoin network is now in a cash generating situation. It’s a Big Deal.
- The last three-months have seen revenue growing at a 40% month over month growth rate. That is not long, but still impressive. The monthly report at the end of September showed the revenue run rate annualized was at about $50 million dollars. (Source link)
If that continues for another two or three months, hopeful others will become aware of the shift from theory & idea to real world cash flows.
BitTensor (TAO) news is starting to get out through some of the highly promotional videos like:
BitTensor – A Generational Opportunity
https://www.youtube.com/watch?v=FkSipjq4KBs&t=376s
BitTensor’s annualized monthly run rate is now about $50 million dollars and growing at about 40% month over month. The linked 21 minute video above discusses and projects that into the next one and two years.
xTAO Inc (XTAIF) $0.50 is the largest owner of BitTensor, which is a publicly traded company. Having said that xTAO Inc is still quite small, owning 63,245 BitTensor. BitTensor (TAO) is currently trading at $258.40. That makes xTAO Inc holdings in BitTensor worth about $16.3 million. Shares outstanding at xTAO are 28.4 million. Multiple that times $0.45, the last trade price at this writing, and we get a number for xTAO’s market cap of 12.73 million dollars. xTAO has about $3 million in additional cash and as mentioned above, has no debt. By this measurement xTAO Inc is worthy more dead than alive. Fully diluted shares however gives slightly different numbers. Fully diluted shares outstanding, is 38 million. This multiplied by the last trade price as this is written is a market cap of $17.1 million. That is still under the market cap of its held asset BitTensor) of $16.3 million plus its cash on hand of $3 million.
NOTE: xTAO In’s stock is very illiquid. Limit orders are strongly suggested. We place xTAO Inc. in the Venture Capital category. A one to two year buy and accumulate with a one to two year intended holding period. Our price goal from a $0.50 cost would be a five times cost goal.
The above conversation is the logic behind my comment about “low company risk, yet a highly volatile stock price”. No Liquidity is the negative trade-off.
We all like volatility when it is upward.
It helps our nervous system, if we know and understand that the “company” is small but a solid value, even though the “stock” price is volatile. Time is a way of managing volatility.
That is the reason for my sharing this note.
LEADERSHIP MATTERS:
Karia Samaroo is the Founder and CEO of xTAO. Samaroo holds about 9% of xTAO Inc. shares outstanding.
Karia founded xTAO to help build infrastructure around Bittensor and decentralized AI. He believes the next generation of AI should be open, accessible and owned by the people who contribute to it and created xTAO as a long-term institution aligned with that future.
Karia Samaroo was also the Founder, former CEO and Chairman of WonderFi. Karia founded WonderFi in 2021 on the belief that digital assets would only reach the mainstream through a trusted, regulated platform. He built the brand, took the company public and brought together some of Canada’s best talent and technology under one roof. WonderFi grew into the country’s largest regulated crypto platform before its acquisition by Robinhood in 2026 for C$250M.
Prior to founding WonderFi, Samaroo co-founded First Coin Capital, a cryptocurrency and blockchain-focused investment bank. He served as the company’s General Counsel and Chief Compliance Officer (CCO) from September 2017 until August 2018, at which point the firm was acquired by Michael Novogratz’s Galaxy Digital. Following the acquisition, Samaroo transitioned to serve as the General Counsel and CCO for Galaxy Digital Canada.
Link to a 60-second video description of xTAO Inc & Investor Deck
Link to the Management team, Board of Directors and Advisors at xTAO Inc (XTAIF)
Link to Magazine article about Samaroo in October 2024 while at WonderFi Inc.
Karia Samaroo is a 9% owner, Founder and CEO of xTAO Inc. Karia draws no salary from the company and has a share lock-up on his xTAO position until 2028. See the link above to Management Team, Board of Directors and Advisors.
Initial xTAO Inc. Institutional investors include Digital Currency Group — DCG, Animoca Brands, Arca, Arche Capital, Borderless Capital, FalconX, Hypersphere Ventures, Off the Chain Capital, Republic, Stratos, Cadenza Capital, Contango Digital Assets, EV3 Ventures, Nickel5 Investments, and the Venture Department,.
ABOUT BitTensor (TAO):
Bittensor is a decentralized, blockchain-based network that functions as a peer-to-peer marketplace for artificial intelligence and machine learning services.
How It Works
- Subnets: The network is split into specialized, independent subnets. Each subnet operates as its own market focused on a specific AI task—such as text generation, data storage, image recognition, compute, or drug discovery.
- Miners: Participants (miners) provide the actual machine intelligence, predictions, or computing power for a subnet.
- Validators: Validators assess the quality of the work produced by miners.
- Yuma Consensus: A core consensus mechanism that separates chain functions from validation and coordinates rewards based on performance.
- Decentralization: The architecture removes corporate gatekeepers and centralized tech giants, creating an open-source, global network of contributors.
Tokenomics (TAO)
- Native Token: TAO is the utility and reward token of the Bittensor ecosystem.
- Scarcity Model: Modeled after Bitcoin, TAO has a fixed max supply of 21 million tokens and features periodic halvings that reduce new token issuance over time.
- Staking & Incentives: Token holders can stake TAO to validators to help secure the network and earn a share of rewards. Under dynamic TAO (dTAO), subnets also feature their own alpha tokens tied to automated market maker (AMM) liquidity pools.
You can read more about the protocol and developer tools on the Bittensor Official Website or inspect live network documentation via Bittensor Docs.
Interesting Video: Why Are All these Billionaires Investing in BitTensor TAO?
https://www.youtube.com/watch?v=PzzIe8vzbI0
LOTM Developed Screening Process:
CIF — Comprehensive Investment Framework™ (5 Core Factors): A forward-looking framework evaluating the fundamental characteristics that influence an investment’s long-term quality and asymmetric return potential.
- CIF Sub-set: DIIF — Digital Infrastructure Investment Framework™ (5 Core Factors + Specialized Digital Overlays): The digital-infrastructure application of CIF, designed for blockchain, digital finance, AI, data centers, energy and network ecosystems.
TECF — Token Economics & Cash Flow™ (10 Factors): A fundamental framework evaluating the economic quality, sustainability and value-capture characteristics of digital tokens.
REC — Resource Economic Capture™ (10 Factors): A natural-resource framework evaluating how effectively underlying mineral and resource economics can ultimately translate into per-share economic value.
TWHO — The Wormhole Opportunity™ (5 Core Factors): A framework measuring the potential for nonlinear investment repricing as recognition, catalysts, capital flows and structural developments converge.
This report is intended to identify an emerging investment theme and present several vehicles through which investors may gain exposure. It is not intended to recommend a single security or digital asset. Investors should evaluate each opportunity in the context of their own objectives, time horizon, and risk tolerance. The purpose of the CIF/DIIF/TECF process is to discover, rank and encourage disciplined thinking.
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* An account related to LOTM holds a position in this security.
Neither LOTM nor Tom Linzmeier is a Registered Investment Advisor.
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