Neptune Digital Assets (NDA), a publicly listed blockchain company headquartered in Vancouver, Canada, has recently revealed a strategic move in its investment portfolio by acquiring 1 million Dogecoin (DOGE) tokens. This particular purchase, termed a “strategic derivative purchase,” occurred on December 27.
Impact of Investment Timing
However, the timing of this investment hasn’t worked in Neptune’s favor. Since the acquisition, Dogecoin’s value has sharply decreased by 27%, bringing its current price down to 27 cents.
Bitcoin Holdings Expansion
Alongside its foray into Dogecoin, Neptune also made a significant investment in Bitcoin, acquiring 20 BTC at an average price of $99,833 each. This new addition increases the company’s overall Bitcoin holdings to 376 BTC, which is now valued at around $37.2 million.
Growing Institutional Interest
While many companies are jumping on the Bitcoin bandwagon, Neptune distinguishes itself as only the second publicly traded firm to dive into Dogecoin, following Spirit Blockchain (SPIR), which garnered attention in November for its own Dogecoin acquisition strategy.
Cale Moodie, the CEO of Neptune, expressed the company’s intent to continue exploring additional asset acquisitions. He noted that they plan to leverage the increased purchasing capacity provided by their Sygnum credit line. Moodie pointed out that these initial investments showcase the firm’s dedication to its growth strategy while also carefully balancing leverage and debt.
This announcement comes on the heels of Bitwise, a leading asset management firm, filing an S-1 with the Securities and Exchange Commission for an exchange-traded fund tied to Dogecoin’s price, underscoring the growing institutional interest in this digital asset.
Source: Coindesk
