Bit Origin has purchased approximately 40.5 million DOGE as the first step towards its goal of creating a $500 million corporate Dogecoin (DOGE) treasury.
Operating in the field of cryptocurrency mining, Bit Origin announced last week that it would create a Dogecoin-focused corporate treasury. The company announced that it has secured equity and debt financing of up to $500 million for this purpose. The company, which currently has a market value of $45 million, is trading at a price below $0.80.
In a statement regarding the new DOGE investment, Bit Origin CEO Jinghai Jiang explained the reason for the company’s preference for Dogecoin:
“Thanks to our experiences in mining, we are well aware of the advantages and disadvantages of proof-of-work systems. We believe that Dogecoin has significant potential as a micro-payment tool. Especially with the increase in developer activities and institutions' interest in tokenization projects, we think that DOGE has entered a new era.”
In its announcement last week, the company also mentioned the impact of Elon Musk's X Money application and explained its reasons for choosing Dogecoin. CEO Jiang stated, “While respecting the cultural origins of Dogecoin, we believe that current market conditions have evolved it towards decentralized finance (DeFi).”
New Trend in Corporate Treasuries: Dogecoin
Bit Origin purchased 40,543,745 DOGE at an average price of $0.2466 per token. The DOGE price, which has risen approximately 5.5% in the last 24 hours, has reached $0.28.
The success of corporate Bitcoin treasuries has opened the door for other altcoins to enter corporate treasuries as well. With this strategy, Bit Origin has joined the ranks of other companies investing in DOGE, such as Neptune Digital Assets and Dogecoin Cash Inc.
