In a shocking move for both investors and the cryptocurrency market, biotechnology company Coeptis Therapeutics has announced it will merge with Dogecoin mining company Z Squared Inc. with the goal of becoming the largest publicly listed Dogecoin mining company in the U.S. However, instead of excitement, investors reacted negatively: Coeptis's stock dropped nearly 40% in just one day, down to $7.53 per share.
From cancer treatment to... mining meme coins
#CoeptisTherapeutics is famously known as a biotechnology company focused on cell therapy platforms to treat cancers, autoimmune diseases, and infectious diseases. But with this surprising decision, the company will completely change its business model, shifting to the cryptocurrency mining sector – specifically Dogecoin, which was originally created as a joke.
Specifically, Coeptis will merge with Z Squared, a company that currently owns about 9,000 Dogecoin mining machines. After the merger is completed, Z Squared will become a wholly-owned subsidiary of Coeptis, and Z Squared CEO David Halabu will run the new entity.
The goal of the deal is to create a leading public company in the U.S. specializing in Dogecoin mining, while also enabling both retail and institutional investors to access directly a digital asset with a market capitalization of over $20 billion like Dogecoin.
Negative market reaction
However, the financial market seems to not share this excitement. Immediately after the news broke, Coeptis's shares plummeted nearly 40%, showing clear investor anxiety as the company shifts from the healthcare sector to a market as volatile as crypto.
Nevertheless, a representative of Coeptis stated that the company will maintain its biotechnology sector as a separate branch after the deal is completed. 'We believe this is an opportunity for shareholders to access the rapidly growing Dogecoin market,' – shared Coeptis Chairman and CEO Dave Mehalick. He also affirmed that he has been closely monitoring the development of blockchain infrastructure and supports the new management's strategy.
Not just Dogecoin, but also Litecoin and other plans
According to the company representative, in addition to #Dogecoin , they are also focusing on mining Litecoin – a cryptocurrency that can be mined alongside DOGE thanks to the shared Scrypt algorithm. However, the company also revealed that it is 'evaluating additional digital asset strategies' if market conditions are favorable.
This move is not entirely isolated in the industry: previously, Canada's Neptune Digital Assets also invested $250,000 in Dogecoin, while Spirit Blockchain Capital is applying a strategy of accumulating DOGE to generate profits, similar to the approach some institutions take with Bitcoin.
How is the Dogecoin market reacting?
Despite the wave of skepticism from Coeptis shareholders, Dogecoin continues its upward trend. In the past 24 hours, DOGE rose by 1.3% and increased by 16% over the week, currently trading above $0.18. This indicates that the crypto market still maintains a certain allure for investors, especially as more public companies join the ecosystem.
Linking to the crypto market and Binance users
Coeptis's pivot to Dogecoin mining reflects an interesting trend: traditional companies are increasingly interested in digital assets, not just as an investment channel but also as a core business activity. With Dogecoin already listed on Binance and having high trading volumes, this move could create a new wave in the meme coin market – where institutions begin to play a more active role.
For Binance users, this could be an opportunity to observe how the market reacts to Dogecoin being 'officially recognized' through the participation of public companies. However, it is also crucial to exercise caution when investing in highly speculative assets like DOGE – especially in the context of the significant volatility in the stock prices of related companies.
Risk warning
Cryptocurrency is a high-risk field. The information in this article is for reference purposes only and does not constitute investment advice. Asset prices can fluctuate significantly in a short time and may not be suitable for all types of investors. Please consider carefully before participating in the market.