Biopharmaceutical and technologies company Coeptis Therapeutics is merging with Dogecoin mining company Z Squared Inc., with the combined stated aim of becoming the largest publicly traded Dogecoin miner.

But shareholders don't appear keen on the plan, as shares of Coeptis are down nearly 40% on the day to $7.53 as investors react to the news.

The boards of both companies have agreed to the merger, which is subject to closing conditions and both regulatory and shareholder approval.

“We are excited to take this step towards our goal of creating the largest publicly-traded company in the United States primarily focused on DOGE mining,” said Z Squared CEO David Halabu, in a statement. “We’re proud of our strategy to bring retail and institutional audiences alike in the public markets a focused exposure to a DOGE asset that currently has over $20 billion in market capitalization.”

Halabu will remain CEO of the planned merged entity, which will make Z Squared a wholly owned subsidiary of Coeptis. Z Squared currently has 9,000 Dogecoin mining rigs.

“We are excited to bring this opportunity to our shareholders to become involved in the Dogecoin market space,” said current Coeptis President and CEO Dave Mehalick, in a statement. “I’ve been deeply engaged in the evolution of blockchain infrastructure, and am aligned with the direction the new leadership intends to take the company.”

Mehalick added that Coeptis will maintain its biopharmaceutical operations—which focus on innovative cell therapy platforms for cancer, autoimmune, and infectious diseases—via a spinout upon the closing of the planned merger.

Even with today's nearly 40% plunge, shares of the company are still up 37% year-to-date, but down more than 96% from its all-time high.

A spokesperson told Decrypt that the firm plans to maintain its focus on mining Dogecoin and Litecoin—which can be mined simultaneously with DOGE—but that it would consider other crypto assets initiatives, as well.

"Our primary focus today is on optimizing and expanding our Dogecoin and Litecoin mining footprint," they said. "However, we are actively evaluating broader digital asset strategies if market conditions and strategic fit align."

Coeptis is not the first publicly traded firm to seek access to Dogecoin. In February, Canada’s Neptune Digital Assets purchased $250,000 of the top meme coin, while Spirit Blockchain Capital has adapted Strategy’s Bitcoin-amassing playbook and aims to earn yield on its DOGE.

Dogecoin is up 1.3% in the last 24 hours and has gained 16% on the week, now trading above $0.18.

Edited by Andrew Hayward