Grayscale and TAOX take action on two fronts, Bittensor ushers in its institutional moment

On October 10, Grayscale Investments submitted a Form 10 registration statement for Bittensor Trust (TAO) to the U.S. Securities and Exchange Commission (SEC), opening the door for this AI-focused crypto asset trust to move towards compliance and the public market. If approved, the private placement holding period for trust shares will be shortened from 12 months to 6 months, meaning early investors will gain liquidity faster and paving the way for institutional capital to enter.

A few days later, U.S.-listed company TAO Synergies Inc. (NASDAQ: TAOX) announced the completion of an $11 million private placement, with investors including TAO strategic advisor James Altucher and Grayscale’s parent company DCG. This news quickly ignited market confidence—over the past week, the price of TAO surged from $290 to $457, an increase of more than 50%.

As AI becomes one of Wall Street’s strongest narratives, TAO is gradually being seen as a bridge connecting regulated finance and decentralized AI networks. Market sentiment is high, trading activity is rising, and TAO has not only become the “new AI target” in the eyes of institutions, but is also expected to reach a new historical high since April 2024.

What Does Form 10 Mean?

Form 10 is a registration document under Section 12(g) of the U.S. Securities Exchange Act of 1934, officially called the General Form for Registration of Securities. When a trust or fund product submits Form 10 to the SEC and is accepted, it means it upgrades from a “private trust” to an “SEC reporting company,” and must fulfill the same disclosure obligations as listed companies—including regular submission of 10-K (annual report), 10-Q (quarterly report), and 8-K (current report). In other words, once Form 10 becomes effective, the TAO Trust will, for the first time, be formally included in the mainstream U.S. securities regulatory system.

Similar to Grayscale’s Bitcoin Trust (GBTC) and Ethereum Trust (ETHE), the goal of the TAO Trust is to be listed on the OTC Markets, allowing traditional investors to allocate this asset directly through brokerage accounts. Looking back at Grayscale’s path: GBTC submitted Form 10 in 2019, ETHE followed in 2020, and both subsequently transitioned to spot ETFs. TAO’s current move is following the same trajectory.

For TAO, this move has three main implications:

• Shortening the liquidity cycle. The holding period is reduced from 12 months to 6 months, meaning previously locked private placement shares can circulate in the secondary market more quickly, releasing funds for early investors and activating trading depth.
• Opening a compliant entry point. Once registration is effective, the trust can be quoted on the OTC Markets, allowing traditional brokers and family offices to invest in TAO in the form of securities, without directly dealing with crypto wallets or custody services.
• Laying the foundation for ETF conversion. Grayscale has already validated the “Form 10 → ETF” path with BTC and ETH trusts, and Form 10 is the starting point, paving the way for future exchange-traded product (ETP) applications.

“TAO MicroStrategy” Strikes Again

On October 14, U.S.-listed company TAO Synergies Inc. (NASDAQ: TAOX) announced the completion of an $11 million private placement, with investors including TAO strategic advisor James Altucher and early Bittensor supporter Digital Currency Group (DCG).

The company, formerly known as biotech firm Synaptogenix, completed a strategic transformation in July this year and made its first purchase of 29,899 TAO tokens, worth about $10 million. As of now, TAOX has become the world’s largest TAO holder, with all holdings included in the corporate treasury, and plans to stake the tokens on the Bittensor mainnet to participate in network computation and model training, aiming for long-term returns. Since the transformation in July, the company’s stock price has more than tripled, remaining strong even as most DAT companies have generally pulled back.

TAO strategic advisor James Altucher stated: “This financing further consolidates TAO Synergies’ long-term strategy, which not only includes holding and managing TAO tokens, but also creating income and accumulating influence within the Bittensor ecosystem. We welcome DCG’s participation—they are a leader in the crypto industry and one of Bittensor’s earliest supporters. We are full of confidence in the future of decentralized intelligence and believe that Bittensor’s network model will become a key driver of innovation and value creation in the coming years.”

On-chain data shows that Bittensor’s market share in the DePIN (Decentralized Physical Infrastructure) sector has exceeded 33%. With the accelerated deployment of institutional capital, TAO is gradually transitioning from a simple “AI concept token” to a fundamental asset with real network value and cash flow models. The market generally believes that the dual moves by TAOX and Grayscale are becoming an important watershed for institutionalization in the AI sector.

Summary

As Wall Street’s enthusiasm for the AI narrative continues to heat up, from Nvidia to OpenAI and now to Bittensor, this AI wave is rapidly spreading to the crypto market, with TAO becoming one of its core beneficiaries. With dTAO’s revamped incentive mechanism and the first halving approaching, TAO is expected to challenge its historical high of $1,247 once again. After Bitcoin’s golden decade, the AI narrative may become the next consensus for capital, and TAO is standing at the starting point of this new era.