Onfolio Holdings Inc (ONFO)

Onfolio Holdings Inc is listed on the NASDAQ with the ticker ONFO. They acquire/operate small digital businesses.

A lot has changed. When we last spoke, we had a small portfolio and were still figuring out what it meant to be a public company.

We’re still small, but since our IPO we’ve completed seven acquisitions at a blended multiple of 3.3x annual cash flow, grown revenue from $2.2M in 2022 to an $11M+ annual run rate, and built out a portfolio of digital agencies, ecommerce, and online education businesses that now generates meaningful cash flow at the portfolio level.

On the downside, we are still not profitable as the cashflow from the portfolio is consumed by the costs of running a public company.

One evolution has been in how we fund acquisitions. Early on, we used cash from the IPO. That was deployed throughout 2023, and afterwards we had to get creative. Over the past couple of years, we’ve developed a model using non-convertible preferred shares, seller notes, and SPV co-investments that lets us acquire businesses without deploying much or any cash from the parent company balance sheet.

Our 2024 acquisitions added $5.9M in revenue, and Onfolio paid zero dollars of cash for them (aside from legal and due diligence fees).

That helped us get closer to consolidated profit without deploying a lot of cash, and frankly I wish we’d used the more creative financing options sooner.

Operationally, the portfolio has grown to roughly $575K operating profit per quarter as of Q3 2025.

Meanwhile, we’ve cut parent company overhead by about 35% since our IPO. We’ve got better at operating in a more lean fashion but also have a better understanding of what it takes to be a public company and what expenses are and aren’t needed.

The portfolio breaks into two segments.

On the B2B side, we have a group of digital agencies that increasingly work together.

I want to be direct about this because I know the term “Digital Asset Treasury” triggers a pattern-matching response for a lot of micro-cap investors, and that skepticism is justified. There are companies out there that have announced Digital asset treasury strategies as a way to generate headlines and pump their stock, or even as bail-outs. That’s not what this is.

The thesis is straightforward. We had access to a $6M convertible note facility. A portion of that needed to be deployed into digital assets, primarily Bitcoin, Ethereum, and Solana. The remainder is available for working capital, growth initiatives, and debt repayment. It was really a balance-sheet decision.

The arrangement allowed us to raise the capital we needed to extend our runway, deploy capital on growth, and provide (eventual) upside through the appreciation of those assets.

The yield component is the practical part. Ethereum and Solana staking generate ongoing returns without active management. Essentially the returns are similar to treasuries, as Eth generates about 2% and Solana is north of 6%.

The important context is that our core business is acquiring and operating digital businesses at 3-4x multiples. That hasn’t changed. The digital asset position is a treasury management decision, not a pivot in strategy. If someone looks at our portfolio P&L, our agency operations, our path-to-profitability data, and concludes that we’re a crypto play, they haven’t looked closely enough.

The focus for 2026 is clear: close the gap between portfolio distributions and parent company expenses, and restart acquisitions.

On the profitability side, the portfolio is already generating meaningful cash flow. Parent overhead is at its lowest level since we went public. The interest costs from acquisition financing are amortizing down. The convergence is happening and we expect to continue making progress on that front.

On acquisitions, our model is refined and our deal flow is active. We’re focused on digital agencies and online education businesses where we can create value through integration with the existing portfolio.