Penny stock C2 Blockchain (CBLO) has significantly increased its holdings of DOG (DOG) memecoin. According to a recent press release, the company’s treasury now contains over 477 million DOG tokens, up from 406 million. The penny stock claims to be the largest institutional holder of DOG in public markets, with all assets held on the Kraken exchange.
DOG differs from Dogecoin in that it operates directly on Bitcoin's (BTCUSD) blockchain through the Runes protocol, which was launched during the last Bitcoin halving. Unlike most other memecoins, DOG features no insider allocation and generates fees that support Bitcoin miners with each transaction. CEO Levi Jacobson describes this as part of a "long-term accumulation strategy" to build "DOG-backed equity" for public markets.
However, investors should approach this investment with extreme caution. Memecoins are notoriously volatile and speculative assets, often experiencing dramatic price swings based on social media sentiment rather than fundamental value.
C2 Blockchain's business model is essentially tied to the company's value, which is based on a single digital asset with no proven long-term utility or widespread adoption. The penny stock trades on over-the-counter (OTC) markets, which indicates limited regulatory oversight and liquidity. While DOG's Bitcoin-native structure may offer technical advantages over other memecoins, it remains an experimental token with uncertain prospects.
Is This Penny Stock a Good Buy Right Now?
C2 Blockchain remains an extremely high-risk investment opportunity that potential investors should approach with caution. It operates with virtually no meaningful revenue while burning cash at an alarming rate, making it a speculative bet rather than a traditional investment.
With just $20,796 in cash and $16,417 in cryptocurrency holdings as of March 31, 2025, CBLO reported an operating loss of $100,611 for the quarter on revenue of only $13 from staking rewards. Operating expenses skyrocketed from $3,980 to $100,624 year-over-year (YoY), while nine-month losses ballooned to $113,175 compared to $17,490 in the prior year.
CBLO's business model centers on two primary strategies: accumulating DOG memecoin tokens (claiming to hold 477 million) and developing a planned 14-megawatt Bitcoin mining facility in Georgia.
However, the mining project remains entirely speculative, with no land acquired and no construction begun. Notably, CBLO estimates that it will need at least $200,000 for the next twelve months but has no guaranteed funding sources.
The company's sole officer and director, Levi Jacobson, has personally funded operations through $36,568 in loans while also being owed $40,000 in deferred salary. This concentration of control and financial dependency on one individual creates governance and continuity risks.
Other critical risk factors include extreme volatility of cryptocurrency holdings, complete dependence on external funding without guaranteed sources, minimal operational history, and substantial ongoing losses. CBLO trades on over-the-counter markets with limited regulatory oversight and liquidity.
Investors should only consider CBLO if they can afford to lose their entire investment and understand they are essentially betting on cryptocurrency price movements rather than a traditional business model.
