CleanCore's stock price has fallen 94% from its high, and its strategy of over $100 million in DOGE reserves is facing market skepticism.

On November 13, 2025, CleanCore Solutions (stock code: ZONE), a clean product company, saw its stock price fall by 7% to $0.43, setting a new annual low, down nearly 94% from the $7 level at the end of August. Although the company reported a year-on-year revenue rise of 125% to $900,000 in the first quarter and holds 733 million DOGE (worth approximately $117.5 million), a net loss of $13.4 million for the quarter has raised market concerns about its financial strategy. The company's long-term goal of acquiring 5% of the circulating supply of DOGE faces severe challenges.

CleanCore's Financial Performance and Market Reaction Distinct Contrast

CleanCore's Q1 2026 financial report shows that the company's revenue rose from $400,000 in the same period last year to $900,000, with a gross margin increase from 51% to 59%, indicating a healthy growth trend in its core business. However, one-time financial strategy-related expenses caused the net loss to widen to $13.4 million, significantly larger than the $900,000 loss in the same period last year. This divergence between the fundamental improvement and the big dump in stock price highlights investors' concerns about the company's aggressive cryptocurrency financial strategy.

CEO Clayton Adams explained during the earnings call: “This quarter's financial performance reflects several one-time expenses related to treasury strategy transactions, while our core business has achieved rise and cash flow on an independent basis.” The company's cash reserves remain at $12.9 million, providing a buffer for operations. However, the market is more concerned about the administrative expenses, which surged from $900,000 to $8.6 million, including $1.2 million in non-cash equity compensation, indicating the high cost of the company's strategic transformation.

CleanCore DOGE holdings value fluctuation challenges

CleanCore's DOGE holdings have reached 733 million coins, valued at approximately $117.5 million based on the current price of $0.16, but this figure has shrunk by 37.5% from the $188 million valuation three months ago. This volatility is directly reflected in the company's stock performance, with ZONE experiencing a big dump of 78% in the past month, indicating that the market views CleanCore as a proxy investment tool for DOGE rather than a traditional cleaning product company.

The cooperation between the company and the Dogecoin Foundation's business department, House of Doge, constitutes the core of its financial strategy. The $175 million private placement completed in September is specifically aimed at supporting DOGE financial plans, with the goal of enhancing its utility by increasing the actual payment applications of DOGE. Adams emphasized: “By combining professional financial governance with projects that enhance the use and adoption of DOGE transactions, CleanCore is helping to position DOGE as a trusted reserve asset and the cornerstone of next-generation digital finance.”

CleanCore treasury strategy key data

• DOGE holdings: 733 million coins (approximately 117.5 million USD)
• Financial target: acquisition of 5% of DOGE circulating supply
• Private Placement Financing: $175 million (specifically for financial strategies)
• Stock price performance: fell 78% within the month (set a historical low of $0.373)
• Quarterly revenue: $900,000 (year-on-year rise of 125%)
• Net loss: 13.4 million USD (mainly for one-time expenses)

Market Acceptance of Cryptocurrency Corporate Finance Strategies

The dilemma of CleanCore is not an isolated case, but a challenge faced by many publicly traded companies with transforming cryptocurrency asset strategies in 2025. The “selling equity to acquire cryptocurrency” model pioneered by MicroStrategy performed well during the bull market but exposed serious flaws during market corrections. The sustainability of this strategy is questioned when a company's stock trading price falls below the net asset value of its cryptocurrency holdings.

Will McEvoy, Chief Investment Officer of Cypherpunk Technologies, pointed out: “The recent poor performance of digital asset treasury companies is due to private investments dominated by short-term speculative capital. We have taken a different path by establishing a value-aligned investor coalition that recognizes the long-term importance of Zcash and privacy protection.” This viewpoint reflects the market's increasing emphasis on the quality of treasury strategy execution, as merely announcing the holding of cryptocurrencies is no longer sufficient to obtain market premiums.

Uncertainty in Regulatory Environment and Accounting Treatment

Publicly listed companies face regulatory and accounting challenges when holding cryptocurrencies. Although the Financial Accounting Standards Board (FASB) in the United States has allowed companies to measure cryptocurrencies at fair value, the impact of quarterly fluctuations on the income statement has deterred many traditional investors. At the same time, the SEC's requirements for publicly listed companies to disclose cryptocurrency holdings are becoming increasingly stringent, raising compliance costs.

From a regulatory perspective, the business models of companies like CleanCore blur the lines between traditional enterprises and investment funds, potentially triggering issues related to the applicability of the Investment Company Act of 1940. This uncertainty further suppresses valuations, leading to a severe discount of stock trading prices relative to net assets. Securities lawyer Jennifer Allen commented, “When a company's primary assets become liquid cryptocurrencies, regulators may reassess its classification, which poses potential risks for shareholders.”

CleanCore: Extreme Testing of Corporate Crypto Treasury Strategies

The big dump in CleanCore's stock price, along with the value fluctuations of its DOGE holdings, is becoming a stress test to examine the limits of listed companies' cryptocurrency financial strategies. When the market frenzy subsides, those companies that have closely tied their fate to a single cryptocurrency are facing a brutal revaluation. This revaluation process not only concerns the survival of individual companies like CleanCore but will also define the reasonable boundaries for using cryptocurrency in corporate financial management. On the road to the integration of digital assets and traditional finance, CleanCore's case provides a warning: innovative strategies need to be executed robustly, and market patience is often more limited than expected.