Nasdaq-listed company CleanCore raised $175 million to make Dogecoin its primary reserve asset, but its stock price fell nearly 60% instead of rising.

Clean technology company CleanCore Solutions announced the completion of a $175 million private sale, planning to use Dogecoin as the company's primary reserve asset. The plan is supported by the Dogecoin Foundation and the commercial entity House of Doge, with Elon Musk's lawyer Alex Spiro serving as chairman of the board. Despite over 80 institutional investors participating in this round of financing, the market reaction was negative, with CleanCore's stock price plummeting nearly 60% on the same day. The price of Dogecoin is currently stabilizing around $0.21, situated in a critical technical support area, and its future trend may depend on whether it can hold the $0.214 support.

CleanCore Completes $175 Million Financing, Transitions to Dogecoin Reserve Strategy

NASDAQ-listed company CleanCore Solutions (stock code: ZONE) recently announced the completion of a $175 million private sale, with plans to use the funds to increase its holdings in Dogecoin and make it a core reserve asset of the company. This initiative is jointly promoted by the Dogecoin Foundation and its business partner House of Doge, aiming to enhance the acceptance and practical use of Dogecoin among institutions.

The financing is completed through private sale pre-funded warrants, priced at 1 USD each, with a total issuance of 175 million units. More than 80 institutions participated in this round of investment, including well-known crypto investment funds such as Pantera, GSR, FalconX, MOZAYYX, and Borderless.

Elon Musk's lawyer Alex Spiro appointed as Chairman of the Board, foundation members join governance

Alex Spiro, the lawyer known for representing Elon Musk and being a long-time supporter of Dogecoin, played a key role in this transaction and will serve as the chairman of the CleanCore board. Dogecoin Foundation director Timothy Stebbing also joined the board, emphasizing that this reserve move is "an important step for Dogecoin towards institutional adoption."

House of Doge CEO Marco Margiotta will serve as Chief Investment Officer of CleanCore. He stated: "By launching reserve strategies in collaboration with the official foundation, we have set a new benchmark for how listed companies can establish practical applications in relation to digital currencies."

Market reaction is severe: ZONE stock price fell nearly 60% in a single day.

Despite the successful completion of financing and support from various institutions, the capital market reacted negatively to the news. According to TradingView data, the stock price of CleanCore (ZONE) fell sharply after the announcement, with an intraday drop of up to 59%, closing down about 50% at $3.38. However, the ZONE stock price has still risen over 200% in the past six months, with an increase of 165% year-to-date.

Dogecoin price is at a key support area, future trend faces a watershed.

(Source: TradingView)

Despite CleanCore's strong promotion of the reserve plan, the price of Dogecoin has not shown significant fluctuations, currently trading around $0.21, with a 24-hour increase of less than 1%. According to technical analysis, Dogecoin is in a key support area near $0.214, which corresponds to the Fibonacci 0.5 retracement level and the ascending trend line, becoming the focus of contention between bulls and bears.

If the support area is maintained, Dogecoin may test the resistance level of 0.278 dollars; if it breaks down, it may further drop to 0.197 dollars (golden pocket support) or even the 0.173 dollars retracement area. The Stoch RSI indicator shows that the market is in a neutral zone, indicating that significant directional volatility is about to occur.

Conclusion

CleanCore's decision to use Dogecoin as a reserve asset is innovative at a strategic level, attempting to set an example for publicly listed companies to embrace meme assets. However, the severe negative reaction from the capital markets also reflects traditional investors' concerns about the high volatility of cryptocurrency assets as corporate reserves. Dogecoin's price is at a technical critical point, and whether it can achieve a breakthrough with such fundamental news still requires further market validation. While the allocation of cryptocurrency assets by enterprises is gradually becoming a trend, the short-term stock price performance indicates that the high-risk characteristics of this strategy should not be overlooked.