Singapore-based cryptocurrency mining company Bit Origin, listed on NASDAQ, announced on Thursday that it will make Dogecoin (DOGE) the core asset of its latest cryptocurrency financial strategy. The company stated it has signed agreements with qualified investors to sell up to $400 million of Class A common stock and up to $100 million of convertible debt to support this plan.
Bit Origin stated in a press release that its Dogecoin financial strategy aims to create long-term value for shareholders by increasing the value of DOGE held per share, while also "reflecting the company's expectation that Dogecoin will likely be integrated into payment layers (such as X Money)."
Bit Origin CEO Jinghai Jiang stated, "What started as merely a joke has evolved into a globally liquid asset with payment utility. Few digital assets can match Dogecoin in terms of transaction settlement speed and community size, which continues to drive its widespread application in peer-to-peer payments and online commerce."
Bit Origin has completed its first convertible bond financing of $15 million, most of which will be used for its initial Dogecoin purchases. The company also plans to further explore services aimed at miners, payment applications, and other value-generating businesses within the Dogecoin ecosystem.
Since going public in 2019, the company's stock price has nearly evaporated. However, after announcing the Dogecoin reserve plan on Thursday, Bit Origin (stock code: BTOG) saw its stock price surge by 90%, closing at $0.631.
Bit Origin is emulating the strategy increasingly adopted by more businesses today: incorporating cryptocurrencies into their balance sheets as reserve assets. This trend began in 2020 when MicroStrategy (now Strategy) first made significant Bitcoin (BTC) acquisitions, followed by more companies joining in and expanding from Bitcoin to other cryptocurrencies including Ethereum (ETH) and SOL.
According to data from CoinGecko, Dogecoin (DOGE) has also seen significant gains amidst a substantial rebound in the cryptocurrency market, rising by 12.7% in the past 24 hours, with a trading price of $0.236 before the deadline.
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