China-based Bit Origin raises $500M to acquire 40.5M DOGE becomes largest publicly traded holder

Bit Origin, a China-based pork processing company and Bitcoin miner, has finalized a $500 million fundraising campaign to acquire 40.5 million Dogecoin (DOGE) for its cryptocurrency treasury, positioning itself as the largest publicly traded holder of the altcoin [1]. The company announced its intent to raise capital through a combination of share sales and debt offerings on July 17, framing the move as a strategic initiative to diversify its crypto portfolio. The acquisition has reignited discussions about DOGE’s price dynamics, particularly as the token has remained range-bound between $0.14 and $0.29 for several days.

Technical analysis of the DOGE/USDT pair highlights a recent dip from $0.29 to near the 20-day simple moving average ($0.21), followed by a tentative rebound. Traders are monitoring key resistance levels at $0.26 and $0.29, with a successful breakout potentially signaling the start of a new upward trend. Analysts suggest that if buyers overcome these thresholds, the pair could target $0.44 based on pattern-based projections [1]. However, a breakdown below the 20-day SMA would indicate weakening bullish momentum, prolonging the current consolidation phase. On shorter timeframes, the 4-hour chart reveals a declining 20-SMA and RSI entering negative territory, underscoring near-term bearish dominance. A close above the 20-SMA, however, could alleviate selling pressure and set the stage for a test of $0.27 and $0.29, where further resistance is anticipated [1].

The market’s response to Bit Origin’s purchase hinges on broader demand dynamics. By reducing liquidity in the open market through treasury allocation, the firm may inadvertently support DOGE’s price, though such strategies are not unique to this token. The scale of the acquisition and the company’s stated goal to dominate the DOGE market differentiate this case. Analysts caution that while institutional purchases can boost sentiment, they do not guarantee price increases, as macroeconomic factors and market conditions remain critical variables [1].

The timing of the announcement is strategically significant. With DOGE already trading near its lower range boundary, the purchase could act as a psychological catalyst for buyers. Historical data suggests treasury allocations often coincide with short-term rebounds, though sustainability depends on broader participation. If Bit Origin’s stake becomes a benchmark for institutional investors, it could enhance DOGE’s appeal as a hedge against Bitcoin volatility or a speculative altcoin play [1].

Critically, technical projections must be distinguished from actual outcomes. While pattern-based models suggest a potential rally to $0.44, these are not guaranteed. The bears remain active, with the RSI’s negative territory and the 20-SMA’s downward trajectory indicating the possibility of further pullbacks. Investors are advised to monitor volume shifts and on-chain activity for confirmation of trend reversals.

Bit Origin’s acquisition reflects the growing convergence between traditional industry players and the crypto market. As corporate treasuries increasingly adopt digital assets, the valuation frameworks for fiat and crypto are becoming intertwined. For DOGE, the move adds a layer of institutional credibility, though long-term success will depend on broader adoption and network utility. The market now awaits further actions from the firm and sector-wide trends to gauge the full impact of this strategic purchase.

Source: [1] [DOGE news update: Treasury purchases may kickstart rally to $0.29] [https://cointelegraph.com/news/doge-news-update-treasury-purchases-may-kickstart-rally-to-dollar0-29]