Eightco Holdings Inc. (ORBS): A Bear Case Theory

Core Thesis - Eightco Holdings Inc. is a highly speculative and unprofitable company that has undergone multiple business model changes in recent years, currently adopting Worldcoin as its primary reserve asset [2][3] Financial Performance - As of September 26th, Eightco's share was trading at $11.49, with a trailing P/E of 0.05 [1][2] - The company has a significant debt of $31.8 million, negative working capital of $21 million, and operating losses of 15%, with deeply negative ROE and ROIC [3][4] - Eightco's tangible net equity is approximately $8 million, indicating that its recent stock surge is driven by hype rather than solid business fundamentals [4] Corporate Structure and Strategy - The company was delisted from Nasdaq in October 2023 due to noncompliance and has minimal corporate and operational infrastructure, with all office leases on a month-to-month basis [2][3] - Dan Ives has been appointed as Chairman, but his history of regulatory issues raises concerns about the company's credibility [4] Market Reaction and Valuation - The pivot to Worldcoin generated extreme hype, causing the stock price to spike from $1.45 to over $80 in a single day, despite the underlying financial weaknesses [3][4] - Following the price surge, Eightco is currently valued at $118 million, but this valuation is not supported by its financial health [4]