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

We came across a bearish thesis on Eightco Holdings Inc. on MELIFINANCE NEWSLETTER.’s Substack by Meli. In this article, we will summarize the bulls’ thesis on ORBS. Eightco Holdings Inc.’s share was trading at $11.49 as of September 26th. ORBS’s trailing P/E was 0.05 according to Yahoo Finance.

Eightco Holdings Inc. (Nasdaq: ORBS) is a highly speculative and unprofitable company that has repeatedly changed its business model over the past three years, previously operating as Vinco Venture and briefly as Cryptyde, Inc. The company was delisted from Nasdaq in October 2023 due to noncompliance, and its current strategy revolves around adopting Worldcoin (WLD) as its primary reserve asset, coupled with the appointment of Dan Ives, formerly of Wedbush Securities, as Chairman.

This pivot generated extreme hype, driving the stock from $1.45 to over $80 in a single day, despite the company having negligible cash relative to its $31.8 million debt, negative working capital of $21 million, and operating losses of 15%, with ROE and ROIC deeply negative. Eightco’s balance sheet is burdened by $38 million in related-party liabilities, mostly convertible notes, accounts payable, and accrued expenses, while the company itself has issued warnings about its ability to continue as a going concern. Its corporate and operational footprint is minimal, with all office leases on a month-to-month basis, including the expired headquarters lease in Easton, PA, and co-working spaces abroad, signaling a lack of long-term infrastructure.

Dan Ives’ history of regulatory issues and public controversies, including an SEC settlement over revenue recognition, raises further concerns about credibility. The CEO, currently on leave, has already capitalized on the stock surge via insider sales, suggesting that related-party holders may follow suit. Despite a currently being valued at $118 million following the price spike, Eightco’s tangible net equity is only around $8 million, highlighting that the stock’s recent surge is driven by hype rather than underlying business fundamentals, making ORBS a highly risky speculative play with limited real value.

Previously we covered a bearish thesis on Strategy Incorporated (MSTR) by Charly AI in May 2025, which highlighted the company’s leveraged Bitcoin exposure, deteriorating software operations, high debt levels, negative free cash flow, and fragile balance sheet. The company’s stock price has depreciated approximately by 19% since our coverage. The thesis still stands as MSTR remains a high-beta crypto proxy. Meli shares a similar but emphasizes Eightco Holdings’ speculative pivots, weak balance sheet, and hype-driven valuation.

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Disclosure: None.