BitOrigin Ltd has announced the purchase of approximately 40.5 million DOGE. This strategic acquisition marks the first phase of BitOrigin’s $500 million Dogecoin treasury plan.
BitOrigin Bets Big With Dogecoin Treasury
In a press release, Nasdaq-listed BitOrigin revealed the purchase of 40.5 million DOGE worth approximately $10 million. This suggests the start of its 500M DOGE treasury plan, as the company taps into the digital assets ecosystem.
Based on the company’s current share structure, the newly disclosed DOGE holdings have an initial DOGE-per-share ratio of approximately 0.691. This has an average purchase price of roughly $0.2466 per token. Jinghai Jiang, the CEO and chairman of BitOrigin, claims that this is a strategic move based on the company’s mining expertise and understanding of proof-of-work dynamics, rather than merely a speculative one.
We see Dogecoin’s utility potential for micropayments nearing an inflection point, driven by renewed developer activity and broader institutional interest in tokenization. While we embrace its cultural origins, which have helped drive liquidity and global familiarity, we believe current market conditions align with Dogecoin’s evolution toward decentralized finance.
With up to $500 million earmarked for its digital asset treasury, the company has signaled its intention to become a primary institutional holder of DOGE with this move. If market conditions remain favorable, this strategy could increase BitOrigin’s holdings, thereby strengthening the company’s connection to the token’s future.
The move by BitOrigin to enter DOGE-backed treasury positions is consistent with a growing trend in which American companies. For context, MicroStrategy (now Strategy) and Metaplanet are also holding a growing amount of cryptocurrency assets on their balance sheets.
BitOrigin’s treasury model, fueled by a mix of $400 million in equity and $100 million in convertible debt from accredited investors, could make it the first publicly traded Dogecoin treasury company on Nasdaq.
Analysts Eye New DOGE Cycle Amid Treasury Plans
BitOrigin’s DOGE move has prompted a swift response from market observers. Some traders see Technical signals as indicating potential for additional gains. On its daily chart, Dogecoin recently broke through a long-standing resistance level. The RSI indicator maintained its momentum without displaying bearish divergence.
As market confidence is increased by interest from institutional buyers like BitOrigin, well-known cryptocurrency analyst GalaxyBTC pointed to the early phases of what may be a new DOGE cycle.
Trader Alan, known online as Trader Tardigrade, highlighted that even if DOGE pulls back to retest support near $0.25, this could set the stage for a healthy rally targeting $0.31 or even $0.42.
Michael Adeleke
Michael Adeleke is a passionate crypto journalist known for breaking down complex blockchain concepts and market trends into clear, engaging narratives. He specializes in delivering timely news and sharp market analysis that keeps crypto enthusiasts informed and ahead of the curve. With an engineering background and a degree from the University of Ibadan, Michael brings analytical depth and precision to every piece he writes.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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