As September begins, the trend of traditional companies transitioning into crypto treasuries, which started in full effect last summer, shows no signs of stopping. This cycle has seen the formation of Ethereum, Solana, BNB, HYPE and many other types of “treasury companies.”
The latest to join is CleanCore Solutions, a cleaning services provider. Trading under the ticker ZONE on the New York Stock Exchange, the company just announced a $175,000,420 placement to establish an official Dogecoin treasury.
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This initiative will be backed by Dogecoin Foundation and the House of Doge, two well-known DOGE-oriented entities.
Source: TradingView
However, the result of the move was not so tremendous, as the ZONE stock price dropped by almost 60% on the NYSE pre-market. Last Friday, the stock price reached a high of $7.00, but by the end of the three-day weekend, it had collapsed to $2.71.
Dogecoin treasury turned financial catastrophe
It is unclear whether this was an inside job, as the most recent Nasdaq data shows that executives last sold stock in July, when Bethor LTD, a beneficial owner of CleanCore, sold 34,618 ZONE stocks.
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Interestingly, though, the price of DOGE itself rocketed by over 2.3% in just one hour after the announcement. Commenting on the ZONE stock plunge, Eric Balchunas, a prominent voice in the ETF space, offered a laconic yet eloquent response, “What a world.”
It’s difficult to disagree with Balchunas. “Surreal” doesn’t adequately describe a cleaning service provider pouring $175 million into a meme coin when DOGE is the most popular and biggest in the crypto market, only to see its stock plummet 59%.