Bit Origin Ltd, a cryptocurrency mining firm, has seen its stock surge more than 90% after adopting Dogecoin (DOGE) as a reserve asset.
The firm announced yesterday that it plans to raise $500 million to build a DOGE treasury.
Crypto Mining Firm Launches Dogecoin Treasury
In its latest press release, Bit Origin outlined its funding plan. This includes raising $400 million by selling Class A ordinary shares and $100 million via convertible debt.
The firm added that it has already raised an initial $15 million through debt, facilitated by placement agent Chardan. Bit Origin stated that this initiative makes it the first publicly listed company on a major US exchange to adopt the meme coin as a core reserve asset.
The company aims to become one of the largest publicly traded Dogecoin holders, leveraging the cryptocurrency’s low transaction fees, fast settlement speeds, and strong community to drive long-term shareholder value through increased Doge-per-share.
“What started as a joke has evolved into a globally liquid asset with payments utility. Few digital assets rival Doge’s settlement speed and scale of community, which continues to drive adoption across peer-to-peer payments and online commerce. We hope Doge’s performance and community make it a natural fit for X Money, as Elon Musk advances his vision for X as a global super-app,” Jinghai Jiang, CEO and Chairman of Bit Origin, said.
Following the announcement, Bit Origin’s stock BTOG experienced a 90.17% surge, closing at $0.63. Google Finance data showed that the positive momentum continued in pre-market trading, and the stock saw an additional 14.42% gain.
This pump was quite substantial amid a predominantly underwhelming performance. Over the past year, BTOG’s value has depreciated by 63.3%. So, the latest performance highlights investor confidence in the firm’s decision.
Can DOGE Regain Its 2021 Glory?
Notably, the announcement has also fueled DOGE’s rise. The meme coin has seen an 11.62% uptick over the past day. At the time of writing, the dog-themed coin was trading at $0.23.
The pattern of price increase mirrors the rise seen in Bitcoin and Ethereum, driven by growing institutional interest. While BTC has benefited greatly from institutions adding it to their balance sheets, ETH’s latest rally is also bolstered by large-scale purchases. Moreover, it has also solidified the assets’ standing as a store of value.
If more firms join Bit Origin, DOGE could experience a similar trend, allowing it to rise and gain prominence once again. Furthermore, many other factors work in favor of Dogecoin.
Several asset managers have filed to launch a DOGE exchange-traded fund. Importantly, the SEC is actively engaging with the filings, highlighting that the process is not stalled. In addition, analysts have assigned a 90% probability that a Dogecoin ETF will be approved this year.
If that happens, DOGE will likely see a massive influx of capital, further driving its market growth and adoption. Moreover, BeInCrypto recently reported that a meme coin season may be returning, which is again bullish for DOGE.
Meanwhile, retail interest is also reviving. Google Trends data revealed that the search interest for ‘dogecoin’ is approaching peak levels, indicating public interest. Analysts are also forecasting higher valuations for DOGE.
Additionally, in the long run, some believe that DOGE may rise as high as $5.
“No matter what anyone says, the journey to $5 has begun,” an analyst posted.
Thus, all these factors paint a favorable outlook for DOGE. While the price still remains 67% below its all-time high, if analysts’ predictions come true, then the meme coin may also reclaim its record high and its 2021 glory.
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