CleanCore (ZONE) Plunges 8.44% as Dogecoin Strategy Sparks Investor Skepticism

CleanCore Solutions (ZONE) plunged 8.44% on Monday, hitting its lowest level since May 2025, with an intraday drop of 21.33%. The sharp decline reflects growing skepticism among investors toward the company’s aggressive and unconventional strategy of amassing Dogecoin (DOGE) as a core treasury asset.

The company’s recent surge in DOGE holdings—now totaling 710 million tokens, up 42% from early September—has intensified concerns over its reliance on a volatile meme-based cryptocurrency. While CleanCore touts the potential for long-term value creation through the “House of Doge” initiative, critics argue that the lack of intrinsic value and regulatory clarity for Dogecoin exposes the firm to significant risks. The stock’s decline underscores market unease with the strategy, particularly as the crypto market remains prone to sharp corrections.

Compounding these worries is CleanCore’s $175 million private placement in late September, which raised questions about capital structure and shareholder dilution. The funding, intended to fuel further DOGE acquisitions, has been met with skepticism, with investors interpreting the move as a defensive tactic rather than a growth catalyst. The company’s low stock price and the potential release of restricted shares from the placement have amplified concerns about equity value erosion.

Partnerships with regulated exchanges like Bitstamp by Robinhood have added a layer of institutional credibility, yet the company’s singular focus on Dogecoin remains a double-edged sword. While the collaboration aims to enhance transparency, the broader crypto market’s susceptibility to macroeconomic shifts and regulatory scrutiny continues to weigh on investor sentiment. Recent volatility in Dogecoin’s price, including a 4.88% decline in early October, further highlights the precariousness of the strategy.

Regulatory headwinds also loom large. The SEC’s increased oversight of crypto treasury strategies has cast a shadow over CleanCore’s approach, with potential investigations into price manipulation or transparency gaps. The company’s public disclosure of restricted shares and shareholder structure, while distinct from many peers, may not be enough to insulate it from regulatory pressures. As the market grapples with these uncertainties, CleanCore’s ability to balance speculative growth with financial discipline will be critical to its long-term viability.