TaoWeave, formerly known as Oblong, has emerged as a new source of selling pressure for Bittensor's TAO token after liquidating 3,959.23 TAO during the first half of 2026. According to the company’s latest filing, those sales raised $1.172 million but produced a net realized loss of $114,000 as the firm moved to fund operating expenses and manage liquidity.
The disclosure is notable because TaoWeave had positioned itself as a long-only TAO treasury after its December 2025 rebrand. In its own 10-K, the company stated: 'We have not sold any TAO since inception.' That posture lasted only two quarters. By June 30, 2026, cash had fallen from $2.258 million at the end of 2025 to just $735,000. The company used $1.189 million in operating cash during the first half and reported a net loss of $1.593 million.
As of June 30, TaoWeave held 23,335.18 TAO worth $4.709 million, representing about 69.5% of its $6.776 million in total assets. The firm also disclosed it does not hedge its TAO exposure and holds no other digital assets. Its filing states that it expects to sell portions of its TAO holdings from time to time to cover expenses and manage cash and liquidity.
The 8,300 TAO figure circulating on social media is not an official TaoWeave forecast. It is an external sensitivity calculation that annualizes roughly $2.38 million of first-half cash burn, subtracts the $735,000 cash balance and divides the remaining gap by about $198 per TAO. That suggests the company could need to sell around 8,300 additional TAO if the same burn rate continues and the token price remains near that level.
There is also a more constructive side to the treasury report. TaoWeave bought 1,900 TAO during the first half and earned 728.97 TAO through staking, generating $191,000 in staking revenue. Even with those additions, its TAO balance still declined by 1,330.26 tokens, or 5.4%, from the end of 2025.
At the time of reporting, Bittensor's TAO price was around $225.92 after reaching roughly $250 on August 22. At that level, TaoWeave's remaining 23,335.18 TAO would be worth about $5.1 million at $220, giving the company a large crypto reserve compared with its $735,000 cash balance. The key risk for TAO holders is whether additional treasury sales become necessary. If TAO rises, TaoWeave could raise the same amount of cash with fewer tokens. If TAO falls, the company would need to sell more tokens to generate the same dollars, potentially adding further supply pressure to the market.
