Bit Origin (BTOG) shares are extending gains in morning trading on Monday after the crypto mining company announced plans of raising $500 million to launch a Dogecoin (DOGEUSD) treasury.
In its press release, the Nasdaq-listed firm said it will raise about 20% of that capital via a sale of senior secured convertible notes while the rest of the funds will come from an equity offering.
Including its recent rally, Bit Origin stock is up more than 600% versus its year-to-date low.
BTOG investors are cheering the capital raise announcement as it signals strategic conviction and long-term vision.
Bit Origin is positioning itself as a top corporate holder of Dogecoin to benefit from its vibrant community and growing relevance in payment systems.
This could improve investor appeal, drive demand for its miner-facing and payment services, and create asymmetric upside if DOGE appreciates.
Bit Origin has already closed the initial $15 million under the convertible debt agreement which demonstrates execution readiness and immediate capital deployment, adding credibility to the strategy.
In short, a Dogecoin treasury strategy positions the business as an innovator, potentially boosting BTOG sentiment as the overall narrative transforms from mining only to digital asset infrastructure.
While BTOG’s crypto strategy is bold for sure, it’s also speculative at best.
Why? Because Dogecoin remains highly volatile, and its utility in payments is still evolving, not proven. Therefore, anchoring the Bit Origin stock valuation to a meme-driven asset exposes investors to unpredictable swings.
Plus, BTOG shares don’t currently receive coverage from Wall Street analysts, meaning limited institutional insights, no consensus estimates, and reduced visibility in mainstream financial circles.
The lack of coverage makes it harder for investors to evaluate the company’s prospects and creates a credibility gap.
All in all, the aforementioned factors suggest the Dogecoin treasury strategy alone is not an adequately compelling reason to buy BTOG shares at current levels.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
