A firm that has adapted MicroStrategy’s Bitcoin reserve strategy with the meme coin Dogecoin has revealed plans to earn yield on its DOGE coins, with future ambitions to potentially offer products based on other major cryptocurrencies as investors look for new ways to get higher returns on their tokens.
Canadian investment firm Spirit Blockchain Capital said Thursday in a statement it intends to leverage its Dogecoin holdings through the new yield-generating strategy. The publicly traded company said the move will enable it to deliver value to its shareholders, in addition to expanding its treasury efficiency and enhancing the decentralized financial product adoption.
The initiative will serve as the bedrock for the company to launch potential yield-bearing strategies for other assets such as Bitcoin, Ethereum, Tether and Solana in the future, Spirit CEO Lewis Bateman said in a statement.
“We aim to unlock a previously untapped revenue stream while simultaneously positioning ourselves as a market leader in yield generation for not only Dogecoin, but the broader digital asset space,” Bateman said.
How exactly the company plans to generate yield on its DOGE treasury is unclear, however, and the firm did not respond to Decrypt’s requests for comment. Spirit Blockchain Capital did not announce an exact date for its yield-bearing strategy’s rollout.
The company’s announcement comes a few months after it acquired Dogecoin Holdings, a firm that is amassing DOGE as a treasury reserve asset. Spirit previously declined to disclose the size of its Dogecoin treasury to Decrypt, citing regulatory guidelines for its acquisition.
Yield-bearing financial instruments such as stablecoins have gained steam during this latest crypto market rally, with several major companies rolling out new tokens in recent months to meet sky-high investor demand.
Crypto investors can also earn yield on assets through such measures as staking—or locking up assets within a proof-of-stake network to earn interest-like token rewards—or pledging assets to crypto lending services.
Edited by Andrew Hayward
Daily Debrief Newsletter
Start every day with the top news stories right now, plus original features, a podcast, videos and more.
Be the first to comment