CleanCore Solutions’ aggressive push into Dogecoin as an official treasury asset has triggered a market backlash, with the company’s stock collapsing nearly 78% over the last month as investors weigh deep quarterly losses and a sharp downturn in DOGE’s price. The stock, which trades under the ticker ZONE on the NYSE American, fell to a record low of $0.3818 this week and ended Thursday’s session down almost 12%.
The decline continued into Friday, deepening concerns over its crypto-heavy balance sheet.
Dogecoin Strategy Drags CleanCore Lower and Operating Costs Skyrocket
The plunge comes just days after CleanCore reported its fiscal first-quarter results for the period ending September 30, revealing a widening net loss of $13.4 million, compared to $0.9 million during the same period last year.
While revenue doubled year-over-year to $0.9 million, and gross profit improved to $0.5 million, the firm’s spending surged. General and administrative expenses soared to $8.6 million from $0.9 million, driven by professional fees, stock-based compensation, new salaries, and insurance costs tied to its Dogecoin treasury rollout.
The company has placed Dogecoin at the center of its financial strategy. CleanCore closed a $175 million private placement to build its “official” Dogecoin Treasury, partnering with House of Doge, using Bitstamp by Robinhood as its trading venue. The firm has accumulated over 733 million DOGE, worth about $117.5 million as of November 12. It reiterated its long-term objective of acquiring 5% of Dogecoin’s circulating supply to expand the token’s real-world utility. CEO Clayton Adams said the firm seeks to position Dogecoin as a “trusted reserve asset” and remains committed despite recent market volatility. “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,” Adams said.