- Bit Origin plans to raise $500M in equity and debt to build the first Dogecoin treasury.
- Nasdaq-listed crypto miner Bit Origin shifts focus to Dogecoin for payments use.
- Bit Origin shares rose 28% after unveiling its treasury plan as Dogecoin’s price surged.
Bit Origin Ltd (NASDAQ: BTOG) announced on Thursday that it had signed agreements with accredited investors to raise a total of $500 million for a Dogecoin-backed treasury. The funds will include $400 million in equity financing and $100 million in convertible debt.
The crypto mining company based in Singapore also announced that it has already completed a $15 million closing under the debt facility. Bit Origin said that Chardan was the placement agent in the debt facility offered through ATW Partners.
According to the press release, the company announced that the additional capital raised will mainly be used to purchase Dogecoin (DOGE) directly. This move makes Bit Origin one of the first to be among the largest publicly traded holders of DOGE. The strategy indicates that the company has shifted its focus toward direct involvement in digital assets instead of expanding its infrastructure.
CEO Jinghai Jiang noted, “What started as a joke has evolved into a globally liquid asset with a payments utility.” He continued by saying that the high settlement speeds and active users of Dogecoin contributed to its increasing significance in online trade and peer-to-peer transactions.
Bit Origin Bets on DOGE’s Future Role in Global Payments
Bit Origin’s treasury policy aligns with that of other listed companies like MicroStrategy, which was the first to add Bitcoin to its balance sheet in 2020. Compared to its peer firms pursuing Bitcoin or Ethereum strategies, the company’s investment in Dogecoin is relatively uncommon. The company states that this decision was based on transaction speed, low fees, and community strength.
The company also said it believed Dogecoin could contribute to broader financial systems through platforms like X Money. Jiang added, “We hope Doge’s performance and community make it a natural fit for X Money, as Elon Musk advances his vision for X as a global super-app.”
In addition to amassing tokens, Bit Origin will also consider creating Dogecoin-based payment solutions and services catering to the miner market. These operations will focus on generating values within the DOGE ecosystem and rely on the firm’s established mining expertise.
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Shares Jump 28% as Market Reacts to Dogecoin Strategy
Shares of Bit Origin surged 28% in morning trading after the announcement to $0.52. The company’s valuation has fallen by almost 100% since it was listed on the Nasdaq in 2019, as it has incurred excessive market losses. Despite being down 36.61% this year, the DOGE treasury announcement helped recapture investor interest.
As of Thursday, Dogecoin, which started as a meme coin, has gradually gained mainstream attention and adoption. Its price increased by 3.6% over the past 24 hours to $0.21, following the announcement of Bit Origin’s initiative.
The company now aims to become a prominent corporate holder of Dogecoin.
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