TL;DR
- CleanCore suffers a collapse after putting Dogecoin at the center of its treasury, with its shares (ZONE) dropping 78% to a low of $0.3818.
- The company reports a net loss of $13.4M and rising expenses of $8.6M, while DOGE falls over 21%, intensifying pressure on the shares.
- The firm acquired more than 733M DOGE through a $175M private placement, but the token’s decline wiped out gains and raises doubts about its strategy.
CleanCore Solutions experienced a record drop in its stock price after placing Dogecoin at the core of its treasury strategy.
The company’s shares, trading under the ticker ZONE on NYSE American, fell 78% over the past month, reaching a low of $0.3818 and closing the latest session down nearly 12%. The decline reflects a combination of quarterly losses and DOGE’s weakness, which dropped more than 21% over the same period, trading near $0.163.
CleanCore Reports Net Loss Exceeding $13 Million
CleanCore reported its fiscal first-quarter results, closing the period with a net loss of $13.4 million, compared to $0.9 million in the same period last year. While revenue doubled to $0.9 million and gross profit improved to $0.5 million, general and administrative expenses surged to $8.6 million. The increase was driven by professional fees, stock-based compensation, new salaries, and insurance costs tied to its Dogecoin treasury rollout.
CleanCore’s strategy included acquiring over 733 million DOGE, valued at approximately $117.5 million, through a $175 million private placement. The company aims to acquire 5% of Dogecoin’s circulating supply to enhance the token’s real-world utility and position it as a “trusted reserve asset,” according to CEO Clayton Adams. However, the timing of these purchases coincided with a sharp drop in DOGE’s price, generating unrealized losses and adding pressure on the company’s shares.
The largest purchases occurred above current market levels, and although the company briefly reported over $20 million in unrealized gains earlier in the quarter, these evaporated as the token fell. More than 80 institutional investors participated in the strategy, including Pantera, GSR, FalconX, and Borderless Capital.
The collapse contrasts with broader corporate adoption of Dogecoin. DogeHash Technologies, for example, is expanding its mining operations with over 500 additional ASICs after securing a $2.5 million loan, while CleanCore has failed to translate adoption into stock performance.
Although ZONE has gained more than 60% year-to-date, it still trades far below the reported net asset value of its treasury. The combination of high acquisition costs, operational losses, and DOGE’s decline keeps CleanCore under intense pressure as investors assess the viability of its strategy
