CleanCore raises $175M for dogecoin treasury in private placement; stock plunges

[Dogecoin cryptocurrency coin close-up, on top of other cryptocurrency coins]
Dennis Diatel Photography

CleanCore Solutions (NYSE:ZONE [https://seekingalpha.com/symbol/ZONE]) is raising $175M [https://seekingalpha.com/pr/20217453-cleancore-solutions-nyse-zone-announces-175000-420-private-placement-to-build-the-official] through a private placement to establish a dogecoin (DOGE-USD [https://seekingalpha.com/symbol/DOGE-USD]) treasury, with over 80 investors joining a deal backed by the Dogecoin Foundation and House of Doge, it said on Tuesday.

Shares of the cleaning products producer tumbled 51% after the news. DOGE, meanwhile, was little changed in the last 24 hours at $0.21 apiece.

CleanCore (NYSE:ZONE [https://seekingalpha.com/symbol/ZONE]) agreed to offload 175M pre-funded warrants at a price of $1.00 each. The offering is expected to close on or about Sept. 4.

The company plans to use the net proceeds of the offering to buy popular memecoin Dogecoin (DOGE-USD [https://seekingalpha.com/symbol/DOGE-USD]), which will serve as ZONE's primary treasury reserve asset.

The transaction creates the only official dogecoin (DOGE-USD [https://seekingalpha.com/symbol/DOGE-USD]) treasury sponsored by the Dogecoin Foundation and the House of Doge, the authorized commercial division of the Dogecoin Foundation.

With the deal, Timothy Stebbing, director at the Dogecoin Foundation and chief technology officer of House of Doge, will join the board alongside Chairman Alex Spiro. Marco Margiotta, CEO of the House of Doge, will also be joining CleanCore (ZONE [https://seekingalpha.com/symbol/ZONE]) as chief investment officer. House of Doge and 21Shares will serve to support and advise the treasury.

CleanCore (ZONE [https://seekingalpha.com/symbol/ZONE]) noted it's planning to position dogecoin (DOGE-USD [https://seekingalpha.com/symbol/DOGE-USD]) as a credible instrument for payments and tokenization, while exploring exchange-based yield programs to earn income on its reserves.

"By anchoring our treasury with Dogecoin," said CleanCore (ZONE [https://seekingalpha.com/symbol/ZONE]) CEO Clayton Adams, "we’re adopting a forward-looking reserve strategy while proving how public companies can embrace bold change."

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* Financial information for CleanCore Solutions [https://seekingalpha.com/symbol/ZONE/income-statement]
* Financial information for Dogecoin USD [https://seekingalpha.com/symbol/DOGE-USD/income-statement]