Neptune Digital Assets Corp., a Canadian blockchain company, diversified its cryptocurrency portfolio by acquiring 1 million Dogecoin tokens worth approximately $270,000. This purchase, completed on December 27, 2024, was made at an average price of $0.37 per token as part of the company's strategy to manage credit risk and debt levels while maintaining a focus on growth.
Neptune's CEO, Cale Moodie, emphasized the company's current strategy to expand its asset base using a Sygnum credit line, with a particular focus on Bitcoin (BTC). However, the initial purchase of Dogecoin signals a broader ambition by Neptune to diversify its cryptocurrency investments.
Spirit Blockchain, another company in the digital assets space, previously added Dogecoin to its portfolio, reflecting the growing trend of DOGE's popularity among institutional investors. According to Matt Sigel, head of digital asset research at VanEck, Neptune has become the second publicly traded company to invest in the meme coin.
The decision by Neptune and other companies to invest in Dogecoin may indicate a growing institutional interest in this token. Bitwise, Osprey Funds, and Rex Shares are among the investment companies seeking regulatory approval to launch exchange-traded funds (ETFs) that will track the price of Dogecoin, potentially increasing its accessibility to a wider range of investors.
At the time of the announcement, Dogecoin was trading at $0.27, with a market capitalization exceeding $40 billion, according to price data from The Block. Interest in Dogecoin ETFs and the recent purchases by Neptune and Spirit Blockchain indicate a potential increase in institutional adoption of this cryptocurrency.