US-listed Bitcoin mining company Bit Origin (BTOG) announced on July 17 that it will utilize up to $500 million to establish a DOGE reserve. Analysts pointed out that for many investors, this may not just be a single company's asset allocation adjustment, but rather a watershed moment marking the transition of meme coins from 'jokes' to 'financial instruments.'

Bit Origin secures $500 million all at once

The announcement indicates that Bit Origin has secured a financing limit of $400 million in Series A common stock and $100 million in convertible debt, with the first phase of $15 million already completed for immediate acquisition of DOGE. The company expects that after completing full financing, it will become one of the publicly listed companies holding the most DOGE. CEO Jinghai Jiang stated:

'DOGE has transformed from a joke into a globally liquid asset suitable for payments. We aim to create long-term value for shareholders by increasing the 'DOGE held per share.'

Dual layout of financing structure and business transformation

Bit Origin's main business is Bitcoin mining, with past capital expenditures focused on mining machines and electricity. Now, holding DOGE in the form of a 'treasury', there are three intentions:

  • First, directly participate in the value growth of DOGE;

  • Second, utilize the fast settlement speed and low transaction fees of DOGE to enter the peer-to-peer payment market;

  • Third, lock in opportunities for integration with payment layers like X Money envisioned by Elon Musk.

The company's 'payment + treasury' dual engine allows both the main business and the balance sheet to benefit simultaneously, reducing the risks of merely cycling through mining.

The announcement also mentioned that Bit Origin plans to provide services for DOGE miners, develop payment applications, and even promote other value-added operations within the ecosystem. In other words, it not only holds coins but also wants to be a driver of infrastructure and applications, thereby expanding the network effect of DOGE.

Bit Origin's stock price surged 90%

Encouraged by this news, Bit Origin's stock BTOG skyrocketed 90% after hours on July 18, Taiwan time, with the stock price temporarily reported at $0.63 and a market capitalization of approximately $37.41 million.

Meme coins move towards institutionalization: significance and risks coexist

Prior to this, there were few companies in the public market that regarded meme coins as core reserves. Although exchanges hold a large amount of DOGE, most of it is for customer custody. Bit Origin's actions represent the formal entry of meme coins into the company's financial statements, prompting the capital market to reassess the risk premium and valuation model of DOGE.

On the other hand, meme coins are highly volatile and regulatory attitudes are unclear. If prices plummet, their financial reports will face impairment pressure, and stock prices may also be affected.

Overall, whether this move can bring the 'DOGE per share' dividends expected by shareholders still needs time to verify. The only certainty is that when capital begins to calculate the inventory and valuation of meme coins, the market narrative may already be about to be rewritten.

In the next phase, investors can focus on two things: First, when will Bit Origin complete the $500 million financing? Second, will more listed companies follow suit to establish meme coin treasuries, and will other meme coins also be included in the company's balance sheet? If someone takes over, DOGE and other meme coins may have the opportunity to officially upgrade from internet memes to the 'new normal' of corporate assets.