CleanCore Stock Crashes 76% In A Month As Dogecoin Treasury Gamble Sours

ClearnCore Solutions’ stock price has plummeted 76% in the past month as the company’s gamble to become a Dogecoin (DOGE) treasury firm sours.

The implosion continued in the last day as its stock slid to as low as $0.373 before closing 11% down at $0.41.

CleanCore share price (Source: Google Finance)

Its slump has coincided with a steep drop in the DOGE price, which has tumbled more than 6% in the past 24 hours and 20% in the last month, according to CoinMarketCap.

CleanCore has accumulated 733.1 million DOGE, which is the largest meme coin by market cap, valued at around $117.5 million, after saying it aims to boost the meme coin’s utility with real-world payments and more. 

CleanCore Posted Net Loss After DOGE Treasury Pivot

Financial results for the quarter ending Sept. 30 showed a net loss of $13.4 million, compared with $0.9 million a year earlier even as revenue more than doubled to $0.9 million from $0.4 million to $0.9 million.

Most of the losses were due to a one-time expense related to its pivot to DOGE treasury management, it said.

“Our financial results during the quarter reflect several one-time expenses related to our treasury strategy transaction, while our core business experienced growth and cash flow on a stand-alone basis,” said the company’s CEO Clayton Adams in a statement. 

“Going forward, we will continue to invest in our DOGE portfolio and maintain discipline in our core operating business,” Adams added. 

That came after the company closed a $175 million private placement in partnership with House of Doge, which is the commercial arm of the Dogecoin Foundation.

Other DAT Firms Slump

Almost all digital asset treasury firms are struggling after the market took a bearish turn. Crypto’s crypto market cap has slid more than 6% in the past 24 hours to a market capitalization of about $3.28 trillion, with market leader Bitcoin sliding almost 14% in the past month.

Michael Saylor’s Strategy, the pioneer of the trend, has seen its stock price plummet more than 30% in the past month, Google Finance shows. 

Similarly, the Japan-based Metaplanet, which is ranked as the fourth-largest Bitcoin treasury firm, has seen its share price fall more than 17% during the same period. 

Meanwhile, the leading Ethereum treasury firm BitMine, which is led by Fundstrat CIO Tom Lee, has suffered a more than 30% share price drop in the past 30 days. 

Amid the stock price declines, Japan Stock Exchange parent Japan Exchange Group (JPX) is reportedly looking to tighten its regulations around companies that are considering a crypto pivot. 

Among those plans is the potential implementation of a stricter interpretation of backdoor-listing rules and a possible requirement for companies to undergo new audits if they move into large-scale crypto accumulation.