Bitcoin Mining Firm Stock Spikes After $500 Million Raise for Dogecoin Treasury

Publicly traded firm Bit Origin, which is focused on Bitcoin mining infrastructure and investments, is raising $500 million to buy leading meme coin Dogecoin (DOGE) as it builds its own digital assets treasury.

The firm entered into agreements to sell up to $400 million in Class A ordinary shares, as well as up to $100 million in convertible debt. 

“Bit Origin is evolving beyond mining infrastructure to engage directly in the value and utility of digital assets,” said Bit Origin Chairman Jinghai Jiang, in a statement.

“What started as a joke has evolved into a globally liquid asset with payments utility,” he added. “Few digital assets rival Doge’s settlement speed and scale of community, which continues to drive adoption across peer-to-peer payments and online commerce.”

According to its CEO, the firm is also betting on DOGE playing a role in X Money, the financial feature and ecosystem being deployed by Elon Musk and X. Such an integration has been rumored for years, given Musk’s outspoken fondness for Dogecoin, though official plans have never been disclosed.

“We hope Doge’s performance and community make it a natural fit for X Money, as Elon Musk advances his vision for X as a global super-app,” he said.

Bit Origin is not the first publicly traded firm to make a play on Dogecoin. In early July, a publicly traded cannabis company announced plans for a Dogecoin treasury, while back in April, biotech firm Coeptis announced a planned pivot to Dogecoin mining.

Shares of Bit Origin (BTOG) jumped 90% today on the news, finishing the trading day at $0.63. However, shares are still down more than 35% so far this year.

DOGE has climbed 2% on the day to $0.21 and is now up almost 25% in the last month. The leading meme coin still sits nearly 71% off its 2021 all-time high mark.

A representative for Bit Origin did not immediately respond to Decrypt’s request for comment.