GD Culture Group Sinks 28% After Acquiring 7,500 Bitcoin via Pallas Capital Deal
Shares of GD Culture Group plunged 28% on Tuesday following information that the corporate is buying 7,500 Bitcoin by means of a share-based take care of Pallas Capital Holding.
Key Takeaways:
- GD Culture Group is buying 7,500 Bitcoin via a $875 million share take care of Pallas Capital, triggering a 28% inventory drop.
- The firm goals to construct a crypto asset reserve, however buyers are cautious of share dilution and speculative publicity.
- GD Culture joins a rising listing of public corporations holding Bitcoin, regardless of current regulatory and monetary considerations.
The livestreaming and e-commerce agency announced it would issue 39.2 million common shares in alternate for Pallas Capital’s belongings, together with roughly $875 million value of Bitcoin.
The transaction, accomplished final Wednesday, marks a big shift in GD Culture’s strategic route.
GD Culture CEO Says Bitcoin Deal Aims to Build Diversified Crypto Reserve
CEO Xiaojian Wang mentioned the acquisition helps the corporate’s objective of constructing a diversified crypto asset reserve, citing Bitcoin’s growing institutional adoption as a key driver.
Despite the bullish tone, the market responded with skepticism. GD Culture Group (GDC) inventory dropped to $6.99, its steepest single-day decline in over a 12 months, in keeping with Google Finance.
Shares rebounded barely in after-hours buying and selling however stay down 97% from their February 2021 high of $235.80. The firm’s market cap now sits at simply $117.4 million.
Investors seem involved concerning the dilution brought on by the issuance of recent shares. Such strikes typically elevate purple flags, notably when linked to speculative methods like Bitcoin accumulation.
VanEck beforehand warned that corporations financing crypto purchases via inventory choices could erode shareholder worth if their market value falls beneath the worth of their belongings.
GD Culture’s transfer aligns it with a rising listing of “Bitcoin treasury” corporations, public corporations that maintain BTC on their stability sheets.
This development accelerated in 2025, with over 190 public corporations now holding Bitcoin, up from fewer than 100 originally of the 12 months. The market continues to be dominated by MicroStrategy, which controls almost 70% of the full.
GD Culture first revealed its crypto ambitions in May, stating plans to boost $300 million to spend money on digital belongings, together with Bitcoin and the Trump-themed memecoin TRUMP.
The announcement got here simply weeks after the agency acquired a Nasdaq warning for falling beneath the $2.5 million minimal fairness requirement.
Strategy Tops Corporate Bitcoin Holdings with 636,505 BTC
Michael Saylor’s Strategy now holds 636,505 BTC, making it the most important company holder by a large margin.
Bitcoin mining agency MARA Holdings stays in second with 52,477 BTC, after including 705 BTC in August.
But new entrants are gaining floor. XXI, based by Strike CEO Jack Mallers, has amassed 43,514 BTC, whereas the Bitcoin Standard Treasury Company holds 30,021 BTC.
Other main gamers embrace crypto alternate 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 hypothesis round a provide shock. With simply 5.2% of Bitcoin’s fastened 21 million provide left to be mined, continued company demand might drive costs even greater.
Some corporations are aiming a lot greater. 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 occasions their present holdings.
Outside the US, 120 public corporations now maintain Bitcoin. Canada, the UK, Hong Kong, Mexico, South Africa, and Bahrain are among the many nations the place company BTC possession is rising.
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