CleanCore Solutions’ bold strategy to establish a world-first Dogecoin treasury has backfired, resulting in a historic collapse of its stock price and raising serious questions about the viability of such a corporate gamble.
The Strategy and the Immediate Fallout
The decline began in earnest after CleanCore announced on September 2, 2025, that it had secured a $175 million private placement to fund its new “Official Dogecoin Treasury” in partnership with House of Doge, the corporate arm of the Dogecoin Foundation. The company’s ambition was to acquire up to 5% of Dogecoin’s circulating supply, a goal it pursued aggressively by accumulating over 733.1 million DOGE by November 12, 2025.
The market’s reaction was swift and punishing. Following the September announcement, the company’s stock (ZONE) plummeted by 47% in a single day. This was just the beginning of a prolonged downturn. By mid-November, the stock hit a record low of $0.373, marking a devastating 78% plunge over the previous month and placing the share price near its 52-week low.
Mounting Losses and Investor Skepticism
The negative sentiment was dramatically compounded by the release of the company’s fiscal first-quarter 2026 results. Despite revenue growing to $0.9 million, CleanCore reported a net loss of $13.4 million, a sharp increase from the $0.9 million loss it reported in the same period a year earlier.
This massive loss was primarily driven by an explosion in general and administrative expenses, which ballooned to $8.6 million from just $0.9 million the previous year. These costs were attributed to professional fees, stock-based compensation, and other expenses directly tied to launching the Dogecoin treasury strategy. The widening losses and heavy spending on its crypto initiative have led to significant investor skepticism and a weak financial health score for the company.
Official Response and a Warning Sign
In response to the stock’s meltdown, CleanCore issued a statement saying it was not aware of any undisclosed material developments to account for the volatility. The company blamed broader market conditions, including recent declines in cryptocurrency markets. Chief Executive Officer Clayton Adams asserted that the core business experienced growth and that the quarterly results reflected one-time expenses related to the treasury strategy.
Interestingly, the company also hinted at a potential new direction, with Adams suggesting that if the stock remained at these levels, CleanCore would “consider implementing a share repurchase program”. This statement could be seen as an attempt to reassure shareholders, but it also raises questions about the company’s capital allocation priorities after having just raised $175 million to buy Dogecoin.
A Cautionary Tale in a Wider Trend
CleanCore’s story is a prominent example of a broader trend in 2025, where a growing number of public companies, often with struggling core businesses, have pivoted to become “Digital Asset Trusts” (DATs). The model, popularized by MicroStrategy’s success with Bitcoin, involves using company treasuries to hold cryptocurrency. However, experts have warned that this strategy is particularly risky when applied to more volatile assets like “altcoins” or meme coins such as Dogecoin. The CleanCore case appears to be a real-world validation of those risks.
The collapse of CleanCore’s stock serves as a stark case study on the perils of incorporating highly volatile digital assets into a corporate treasury, highlighting the intense scrutiny and market punishment that can follow a strategy perceived as speculative.
