Cleancore Solutions actions (AREA) Tuesday, plunged Tuesday after the company announced a private investment of $ 175 million to establish a digital asset treasure focused on the popular Memecoin Dogecoin .
The transaction involved the sale of 175 million mandates preferred at $ 1 each. More than 80 investors have participated, in particular the major digital asset companies Pantera, GSR and Falconx. The profits will be used to acquire Doge for the Cleancore Treasury and support business operations.
The offer should close on September 4, pending regulatory approvals.
The company’s stock fell by around 60% after the news.
The initiative to make DOGE the main business reserve of the company was also supported by the Dogoin and House of Doge Foundation, the foundation’s business arm, the press release said.
With the agreement, the cabinet also announced its name Alex Spiro, associated with the New York office in Quinn Emanuel Urquhart & Sullivan who represented customers such as Elon Musk, as chairman of the board of directors, confirming a makeshift report last week. Dogecoin Foundation Director Timothy Stebbing joined the Board of Directors, while Marco Margiotta, CEO of House of Doge, will assume the role of director of investments. The manager of the investment of assets Doge and Digital Asset 21Shares will advise Cleancore on the management of the Treasury.
Cleancore is the last participant in an increasingly congested area of pivoting public enterprises to establish cryptocurrency treasury bills. These companies collect funds on capital markets to accumulate digital assets such as bitcoin ether (Eth) And (GROUND). Some companies move on the risk curve to incorporate smaller and more volatile altcoins.
The company said that it was aimed at anchoring Doge as a legitimate asset for payments and tokenization, going beyond its origins of memes. Cleancore also said that he could pursue performance characteristics in type of intention with exchanges to generate yields on his assets.
Read more: The strategy added 4,408 other bitcoin for $ 450 million last week
