The Growing Risks of Meme Coin Treasuries in Public Companies

Public companies allocating meme coins to their treasuries have become a defining trend in 2025, driven by speculative optimism and the allure of viral market narratives. However, this strategy is increasingly exposing firms to strategic corporate risks and market underperformance, as evidenced by the collapse of CleanCore Solutions’ $175 million Dogecoin (DOGE) treasury initiative and the broader slump in Solana-based meme coins.

Strategic Corporate Risks: Volatility and Governance Challenges

The institutionalization of meme coins, such as DOGE and BONK, is fraught with volatility and governance complexities. CleanCore Solutions’ attempt to position DOGE as a utility-focused reserve asset backfired spectacularly, with its stock price plummeting 60% post-announcement [1]. This reaction underscores investor skepticism about tying corporate value to assets with infinite supply models and no intrinsic utility.

Governance challenges further complicate meme coin treasuries. For instance, CleanCore’s collaboration with the House of Doge and Elon Musk’s attorney, Alex Spiro, highlights the reliance on celebrity endorsements rather than structural innovation [1]. Such dependencies expose projects to reputational risks and regulatory scrutiny, particularly as the SEC clarified in February 2025 that meme coins are “collectibles” rather than securities—though enforcement actions for fraud remain possible [5].

Market Underperformance: A Tale of Two Ecosystems

The underperformance of meme coin treasuries is starkly illustrated by the Solana ecosystem. In Q3 2025, Solana-based meme coins slumped 8.5%, with tokens like BONK and Chill House declining by 6.5% and double digits, respectively [1]. This contrasts sharply with Ethereum’s 4.7% gain during the same period, driven by institutional interest in Ethereum ETFs and its robust infrastructure [1].

Standard Chartered analysts note that Solana’s meme coin activity has plummeted, with trading volume in the sector dropping from 73% of the network’s total in mid-July to 44% by September [2]. Meanwhile, Ethereum’s appeal lies in its decentralization and long operating history, making it a safer bet for institutional capital [1]. The divergence reflects a broader market shift toward “quality-focused” assets, as traders reduce exposure to high-beta, low-liquidity meme coins [1].

Regulatory and Liquidity Risks

Regulatory uncertainties persist despite the SEC’s 2025 guidance. The WLFI token, backed by the Trump family and valued at $40 billion, exemplifies the risks of centralized governance models, drawing comparisons to FTX’s collapse [1]. Additionally, liquidity bottlenecks plague meme coins, as seen in the YZY Coin debacle—a Solana-based token that collapsed 74% within hours due to insider manipulation [3].

Public companies like C2 Blockchain and Safety Shot face liquidity mismatches as they scale meme coin holdings. C2 Blockchain’s expansion to 364 million DOG coins, while framed as a bridge between meme communities and Bitcoin’s ecosystem [3], risks overexposure to a token with minimal real-world utility. Similarly, Safety Shot’s $115 million BONK acquisition hinges on the assumption that Solana’s meme coin market will stabilize—a bet that appears increasingly precarious [4].

Conclusion: Balancing Hype and Prudence

The meme coin treasury trend highlights the tension between innovation and risk management. While proponents argue that tokens like DOGE could evolve into functional currencies, the lack of proven utility and institutional safeguards remains a barrier. Investors are advised to allocate only 5–10% of portfolios to meme coins, using stop-loss orders and diversifying into stablecoins or traditional cryptocurrencies [5].

For public companies, the lesson is clear: meme coin treasuries require rigorous risk frameworks, regulatory foresight, and a focus on long-term value creation. As the market continues to evolve, the sustainability of these strategies will depend on overcoming volatility, liquidity, and governance challenges—factors that have already derailed high-profile ventures like CleanCore.

**Source:[1] CleanCore in $175M Deal to Establish a Dogecoin Treasury [https://www.coindesk.com/business/2025/09/02/cleancore-in-usd175m-deal-to-establish-a-dogecoin-treasury-shares-tumble-60][2] Memecoin slump means Solana has big hurdle before surge ... [https://www.dlnews.com/articles/markets/solana-to-hit-record-with-new-niche-says-standard-chartered/][3] Why Remittix Outshines Meme Coins and Ethereum in 2025 [https://www.ainvest.com/news/xrp-level-opportunity-remittix-outshines-meme-coins-ethereum-2025-2508/][4] New BONK Treasury Targets Up to $115 Million in Solana Meme Coin [https://finance.yahoo.com/news/bonk-treasury-targets-115-million-182033452.html][5] What Are Meme Coins? Uses and Risks to Know [https://www.schwab.com/learn/story/what-are-meme-coins-uses-and-risks-to-know]