Key Information:
- CleanCore Solutions announced plans for a $175 million placement to establish a Dogecoin treasury.
- The venture has backing from notable investors, the Dogecoin Foundation, and the House of Doge.
- Public firms are increasingly turning to digital asset treasuries, moving beyond major cryptocurrencies like bitcoin and ether.
CleanCore Solutions (ZONE) faced a significant drop in stock price following its announcement to create a Dogecoin treasury focused on the popular memecoin, Dogecoin (DOGE). The offering consisted of selling 175 million pre-funded warrants at $1 each. More than 80 investors, including significant digital asset firms like Pantera, GSR, and FalconX, participated in the transaction. Proceeds from this initiative will be used to acquire DOGE and support company operations.
Once finalized, the offering is set to close by September 4, pending regulatory approvals. Following the announcement, CleanCore’s shares dropped approximately 60%.
The initiative will make DOGE the company’s main treasury reserve asset, with support from the Dogecoin Foundation and the corporate arm, the House of Doge. Additionally, CleanCore appointed Alex Spiro, a partner at Quinn Emanuel Urquhart & Sullivan known for representing clients including Elon Musk, as its chairman effective immediately. Timothy Stebbing from the Dogecoin Foundation will also be on the board, and Marco Margiotta, CEO of the House of Doge, will assume the role of chief investment officer. The House of Doge and 21Shares, a digital asset investment manager, will advise CleanCore on treasury management.
This move aligns CleanCore with a growing trend among public companies establishing cryptocurrency treasuries, aiming to include more diverse and volatile asset options like Dogecoin.
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