Crypto Journalist
Amin Ayan
Crypto Journalist
Amin Ayan
Share
Shares of GD Culture Group plunged 28% on Tuesday following news that the company is acquiring 7,500 Bitcoin through a share-based deal with Pallas Capital Holding.
Key Takeaways:
- GD Culture Group is acquiring 7,500 Bitcoin via a $875 million share deal with Pallas Capital, triggering a 28% stock drop.
- The company aims to build a crypto asset reserve, but investors are wary of share dilution and speculative exposure.
- GD Culture joins a growing list of public firms holding Bitcoin, despite recent regulatory and financial concerns.
The livestreaming and e-commerce firm announced it would issue 39.2 million common shares in exchange for Pallas Capital’s assets, including approximately $875 million worth of Bitcoin.
The transaction, completed last Wednesday, marks a significant shift in GD Culture’s strategic direction.
GD Culture CEO Says Bitcoin Deal Aims to Build Diversified Crypto Reserve
CEO Xiaojian Wang said the acquisition supports the company’s goal of building a diversified crypto asset reserve, citing Bitcoin’s increasing institutional adoption as a key driver.
Despite the bullish tone, the market responded with skepticism. GD Culture Group (GDC) stock dropped to $6.99, its steepest single-day decline in over a year, according to Google Finance.
Shares rebounded slightly in after-hours trading but remain down 97% from their February 2021 high of $235.80. The company’s market cap now sits at just $117.4 million.
Investors appear concerned about the dilution caused by the issuance of new shares. Such moves often raise red flags, particularly when linked to speculative strategies like Bitcoin accumulation.
VanEck previously warned that companies financing crypto purchases via stock offerings may erode shareholder value if their market price falls below the value of their assets.
GD Culture’s move aligns it with a growing list of “Bitcoin treasury” firms, public companies that hold BTC on their balance sheets.
This trend accelerated in 2025, with over 190 public firms now holding Bitcoin, up from fewer than 100 at the beginning of the year. The market is still dominated by MicroStrategy, which controls nearly 70% of the total.
GD Culture first revealed its crypto ambitions in May, stating plans to raise $300 million to invest in digital assets, including Bitcoin and the Trump-themed memecoin TRUMP.
The announcement came just weeks after the firm received a Nasdaq warning for falling below the $2.5 million minimum equity requirement.
Strategy Tops Corporate Bitcoin Holdings with 636,505 BTC
Michael Saylor’s Strategy now holds 636,505 BTC, making it the largest corporate holder by a wide margin.
Bitcoin mining firm MARA Holdings remains in second with 52,477 BTC, after adding 705 BTC in August.
But new entrants are gaining ground. XXI, founded by Strike CEO Jack Mallers, has amassed 43,514 BTC, while the Bitcoin Standard Treasury Company holds 30,021 BTC.
Other major players include crypto exchange Bullish (24,000 BTC), Metaplanet (20,000 BTC), and publicly listed names like Riot Platforms, Trump Media & Technology Group, CleanSpark, and Coinbase.
This wave of accumulation has fueled speculation around a supply shock. With just 5.2% of Bitcoin’s fixed 21 million supply left to be mined, continued corporate demand could drive prices even higher.
Some firms are aiming much higher. Japan’s Metaplanet and U.S.-based Semler Scientific have set targets of 210,000 BTC and 105,000 BTC by 2027, ten to twenty times their current holdings.
Outside the US, 120 public companies now hold Bitcoin. Canada, the UK, Hong Kong, Mexico, South Africa, and Bahrain are among the countries where corporate BTC ownership is growing.
Credit: Source link
