Bit Origin Acquires $10M in DOGE, Plans $500M Fundraise

In Brief

Monday, September 23, 2024, 21:54 UTC | Reuters

Bit Origin, a publicly traded Bitcoin mining infrastructure firm, announced the acquisition of approximately $10 million worth of Dogecoin alongside plans for a potential $500 million funding round to expand its meme coin portfolio.

Bit Origin secured roughly $10 million in Dogecoin (DOGE).
The Singapore-based company raised up to $500 million last week specifically for acquiring meme coins.
Shares of Bit Origin (BTOG) have surged 386% since mid-July.

Bit Origin is a Singapore-based Bitcoin mining infrastructure company traded on the public market. The company provides various services supporting Bitcoin mining operations, including data center space, cooling, and connectivity.

Shares of Bit Origin (BTOG) climbed over 386% from their July commencement price of $0.16. However, trading saw a slight downward adjustment of nearly 1% on Monday, resulting in a current price of $0.78.

Executive Commentary

“From our experience in mining, we understand the trade-offs that define proof-of-work systems. We see Dogecoin’s utility potential for micropayments nearing an inflection point, driven by renewed developer activity and broader institutional interest in tokenization,” stated Jinghai Jiang, CEO and Chairman of Bit Origin.

Bit Origin is monitoring its Dogecoin treasury, holding a total of 40,543,745 DOGE acquired at an average cost of $0.2466 per coin, valued at approximately $10 million. This value has appreciated to nearly $11.5 million, yielding an 8.1% increase in the last 24 hours and a cumulative 42% weekly gain.

The company, following the trend of other crypto treasury holders, utilizes a DOGE-per-share (DPS) metric, which currently stands at 0.69 DOGE coins per share outstanding.

The market capitalization of DOGE has seen fluctuations this week, rising from approximately $15 billion over the weekend to around $23 billion as of late Monday, reflecting increased investor interest.

Coinbase revealed plans to list DOGE and SOL in its Bitcoin and Ethereum vaults, further validating the asset class. Binance adhered to a previous wait-and-see approach but is expected to launch Spot DOGE trading soon.