Bit Origin, a crypto mining company, has joined other Nasdaq-listed companies, such as GameSquare, in announcing a strategic pivot towards a crypto-backed treasury. The company recently announced plans to establish a Dogecoin treasury and has agreed with accredited investors to raise up to $500M. According to the company, $400M would be raised through equity financing and $100M through convertible bonds to accumulate DOGE assets long-term.
By setting up a Dogecoin treasury, Bit Origin will become the first publicly traded company with Dogecoin as a core asset. The shift to a crypto-backed strategy highlights the ongoing trend of delivering long-term value through digital assets. Bit Origin is betting on Dogecoin’s potential for future payments integrations into platforms, like X.
Bit Origin Aims to Evolve Beyond Mining
CEO and Chairman of Bit Origin, Jinghai Jiang, says the company is evolving beyond mining, diverting into the value and utility of cryptocurrency. In his defense, when asked why the company chose DOGE over other digital assets, Jiang said only a few cryptocurrencies rival Dogecoin’s settlement speed.
He adds that Doge has a shared culture of optimism and resilience that’s beyond existing political and financial systems. “What started as a joke has evolved into a global liquid asset with a payments utility.”
Jiang hopes that Doge will become integrated soon into the X platform, as Elon Musk continues his vision to turn the social media platform into a super app. He also says that Bit Origin will continue to explore payment services and other value-generating mediums within the DOGE space.
Dogecoin Treasury Will Aid Payments, Diversify the Company’s Assets
Jiang reveals that the company’s involvement with Dogecoin underscores its conviction in the network’s grassroots strength and payment utility. DOGE is a memecoin, but unlike the rest, its utility lies in fast payment, with low network fees. Therefore, Jiang is optimistic that Dogecoin’s settlement speed and community scale will drive adoption across peer-to-peer payments and online commerce.
Apart from payment utility, establishing a DOGE treasury will strengthen the company’s balance sheet, as it pursues more revenue streams. Dogecoin will serve as a hedge against inflation, while it’s being utilized for payment. It’s the ideal asset for a treasury, compared to mainstream digital assets, such as Bitcoin or Ethereum.
What’s Next for Bit Origin and Dogecoin?
Bit Origin’s bold decision to set up a Dogecoin treasury makes it the first company to build a reserve around a memecoin. However, the company may not be the only one to do this, as many public companies have indicated interest in building a treasury around DOGE.
A publicly traded cannabis company, Dogecoin Cash, in July, said that it planned a DOGE treasury. Now, Thumzup, a social media marketing company backed by Donald Trump Jr, is considering adding DOGE to its list of altcoins for treasury. The plan to build around DOGE would increase institutional demand for the memecoin and boost on-chain activity, potentially driving the price of DOGE.
Bit Origin recently completed an initial $15M financing tranche under the convertible debt facility. The company will use part of the funds allocated for the first round of DOGE purchases.
