CleanCore Falls 60% After Revealing $175M Dogecoin Treasury Strategy
CleanCore Solutions, a Nebraska-based maker of water ozone cleaning systems, saw its shares fall more than 60% on Tuesday after announcing plans to become a Dogecoin treasury company.
The company announced a private placement of $175 million, backed by over 80 institutional and crypto-native investors, including Pantera, GSR, FalconX and Borderless.
The proceeds will be used to acquire Dogecoin (DOGE) as CleanCore's main reserve asset, an initiative led by newly appointed board chairman Alex Spiro, a longtime advocate of Elon Musk.
The new DOGE Treasury Company is partnering with the Dogecoin Foundation and its business arm, House of Doge.
As part of the deal, Dogecoin Foundation director Timothy Stebbing and House of Dodge CEO Marco Margiotta will take on board and executive roles at CleanCore, with Margiotta named chief investment officer.
Doge House and crypto-ETF issuer 21Shares will advise on treasury strategy and management, including plans to explore share-like product opportunities and DOGE-linked institutional investment products.
“By tying Dogecoin to a public foundation-backed treasury strategy, we're setting the stage for how public companies can align with foundations to build real services around digital currency,” Marjotta said in a statement.
Shares of CleanCore fell to $2.69 late Friday, down from $6.86 in early trading on Tuesday. As of press time, shares of the Nasdaq-listed company are down 54 percent.
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Dogecoin treasury companies are available in abundance
By 2025, several other publicly traded firms have moved to build Dogecoin treasuries.
In January, Spirit Blockchain Capital, an investment firm focused on blockchain infrastructure, announced plans to use DOGE's holdings for profit-generating strategies. Dogecoin Cash Inc., formerly a cannabis and telehealth company. In July, it announced the purchase of 1 billion DOGE by its new branch, Dogecoin Treasury Inc.
In July, BitOrigin, a former Chinese pork producer that ventured into bitcoin mining, announced plans to open a Dogecoin treasury backed by up to $500 million in equity and convertible debt financing.
The companies have seen less-than-stellar results since announcing Dogecoin Treasury strategies.
Year-to-date, Spirit Blockchain's capital has decreased by more than 88%, and Dogecoin Cash Inc. At the same time, it is decreasing by 70%. Bit Origin stock fell about 64%.
Meanwhile, DOGE has fallen to 33% by 2025, according to data from TradingView.
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