ORBS

Eightco has effectively abandoned its original identity. The 10-K confirms it divested the Corrugated Packaging Business in April 2025 and 'no longer intend[s] to generate revenue from our Web 3 Business,' leaving an operating business that is functionally broken: FY2025 revenue fell 16.8% to $33.0M while gross profit collapsed 91.1% to just $534K — a 1.6% gross margin. Operating income was -$57.2M (operating margin -173.5%) and the reported net loss was a staggering -$262M, with a -$375M accumulated deficit. There is no profitable enterprise underneath this ticker; the FY2024 net income of $709K now looks like a one-off blip in a history of heavy losses (FY2022 -$47.3M, FY2023 -$68.3M).

What the market is actually pricing is the Digital Asset Treasury strategy adopted in September 2025. Per the filing, the company held ~$176M of digital assets at fair value at year-end — concentrated in Worldcoin (WLD), Ethereum (ETH) and other crypto — funded by a PIPE and an ATM program. That funding came at brutal cost to existing holders: shares outstanding exploded ~12,242% to 376M and diluted EPS was -$4.14. Management itself warns that under ASU 2023-08 earnings are now marked to crypto prices each quarter, producing 'material period to period volatility' and 'losses independent of our operating performance,' plus custody/counterparty risk across Kraken, Coinbase and FalconX.