Spirit Blockchain
SPIR:CSE
$0.075
105M shares out
$7.5M market cap
Every once in awhile the market throws you a bone, and in this case it looks Spirit Blockchain was thrown a massive crypto bone. A bone so big it looks like the dog is struggling to even wrap its mouth around it let alone even drag it back to its bed to chew on. Still, it’s the happiest dog on the planet, because it was thrown the biggest bone it could possibly ever get.
Spirit Blockchain’s bone is DOGECOIN Holdings Corp. Yes, you read that right, the crypto that started out as a joke which has grown to one of the largest crypto currencies in the world, is not a joke anymore and Spirit has managed to strike a deal to acquire its assets. I am not going to joke about this, because this is no joke. Spirit Blockchain has just acquired one of the largest crypto currencies in the industry and all its intellectual property and underlying assets… Dogecoin. 
In fact, Dogecoin is the 8th largest crypto currency at $23B circulating supply. DOGE is undeniably one of the most widely held crypto’s of all time with 6.7M active addresses and has one of the biggest communities on reddit with 2.5M users. In the 20 years I’ve been writing about micro caps and penny stocks, I don’t think I have ever seen a 5 cent company make a splash in any space like Spirit Blockchain has just done. Not that has the potential that DOGE has at least. This is the deal that makes this company and I would almost inevitably expect a rebranding to DOGE including the ticker symbol.
What does Spirit get when acquiring this meme coin’s intellectual property and assets?
- DOGE’s ETF Platform technology for Dogecoin
- The Dogecoin payment gateway system in development
- Cash of $383k
- Goodwill
What is great about this is the company and this deal, is they did the deal with zero fanfare. If they had done this right, they could’ve blown the lid of of SPIR on day one with news like this… but instead they tried to sneak the news past everyone like this was no big deal. Which is good, because it means the company means business and is not some sort of fly by night promotion.
Some of the key takeaways here are that Dogecoin is a pre-revenue company in the midst of monetizing its assets through the Dogecoin payment system currently in development. This is not just a meme coin anymore. This company is in the process of monetizing one of the largest circulating coins by market cap or users. The potential here really is unlimited once they tap into fees associated with a payment system. You would think that where DOGE is in market cap, how many users it has, and its price of $0.15 to $0.75 that it could be an effective way to make small crypto payments with say like a pack of gum. If you combine being one of the leading ways to pay for things with crypto to DOGE’s credits, the revenue that could flow from this company one day could be similar to Visa or Mastercard or Square. I say this is one of the potential’s here is for DOGE to lead this market. Its absolutely huge. Especially for a$10M market cap company… but this is where Dogecoin could be if and when there is more widespread adoption and use of crypto. We know one one of the next waves of crypto for adoption is actually being able to use it and spend it.
Not the only one… but it is the most obvious. Dogecoin is here to stay. Can they do it? Rome wasn’t built in a day but, yes, Spirit can position DOGE to be a leading crypto in actually buying stuff. And this is where you can sort of see where they are going with it.
Then you want to talk about goodwill. DOGE has a pretty big fanboy in Elon Musk and has very high market sentiment going forward. It is a very bullish crypto for this cycle with some thinking it could crack a buck in this go around.
The deal?!?!?
The DOGE founders took 14M shares of SPIR and another 14M warrants at 0.05. An additional 28M shares to the float. However only a third is free trading at close, a third trades free at 10 cents and the last third vests at 18 cents. Its pretty easy to see that this stock could move to 20 cents in a heartbeat. There is a financing out that is still open so you can’t expect the lid to get blown off just yet, but when it closes all bets are off where the SP goes. It’s probably why they haven’t promoted this yet, because its a friends and family deal at rock bottom prices.
Let this sink in…. the founders didn’t take no buyout cash deal. They are now one of the biggest holders, if not the biggest holder of SPIR going forward on a fully diluted basis. They have nominated Lewis Bateman as their proxy who is now the new CEO. Essentially this company is now controlled by DOGE once all their shares vest. The founders of DOGE actually put their skin in the game here, indicating they feel DOGE is well undervalued and the combination of DOGE and SPIR puts them on a serious growth trajectory. They are combining with SPIR to help monetize the DOGE ecosystem. I certainly don’t expect to see insider selling at the price levels those shares vest so those resistance levels are probably more imaginary than real.
At any rate SPIR has instantly gone from a trading shell with a few fringe crypto assets to one of the biggest potential growers in the industry at a tiny $10M market cap post deal.
From the news release…
“This acquisition represents a pivotal milestone in Spirit’s strategic growth plan, strengthening its position as a key player in the rapidly evolving blockchain and digital asset management sectors, particularly within the Dogecoin ecosystem. By integrating Dogecoin Holdings’ intellectual property and market expertise, Spirit aims to drive innovation in digital asset products and expand its revenue-generating capabilities. This strategic acquisition is designed to attract both retail and institutional investors by leveraging Dogecoin’s cultural relevance and large user base, while enhancing the utility and accessibility of DOGE on a global scale.”
Hello?!?!?
Spirit Blockchain is a NO BRAINER.
Actually let me rephrase that….
Investing in Dogecoin Holdings is a no brainer.
DOGECOIN with a market cap of $23B has done a deal with Spirit Blockchain which has a $10M market capitalization post deal.
That seems like a pricing mismatch to me.
Spirit should be more like $20M or $30M not $10M… but this deal was done with as little fanfare as you can imagine. Let’s just sneak this past everyone they thought.
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