Quick Breakdown
- GD Culture issues 39.2M shares to acquire 7,500 BTC worth $875.4M.
- Stock falls 28% to $6.99, its steepest drop in over a year.
- Firm now ranks among top 15 Bitcoin holders, despite concerns over dilution.
Stock reacts to Bitcoin-fueled acquisition
Shares of GD Culture Group (NASDAQ: GDC) sank 28.16% on Tuesday after the company announced a major share-for-asset deal with Pallas Capital Holding. The livestreaming and e-commerce firm will issue nearly 39.2 million shares of common stock in exchange for all of Pallas Capital’s assets, including 7,500 Bitcoin valued at about $875.4 million.
The transaction, finalized last week, positions GD Culture as the 14th largest publicly listed Bitcoin holder. CEO Xiaojian Wang said the acquisition supports the company’s push to build a “strong and diversified crypto reserve” amid rising institutional acceptance of Bitcoin as a treasury asset.
Largest drop in over a year
Despite the ambitious strategy, investors reacted negatively to the stock dilution. GDC shares closed at $6.99, marking their steepest single-day drop in more than 12 months, before recovering 3.7% in after-hours trading. The company’s market capitalization now sits at $117.4 million, down 97% from its February 2021 peak of $235.80 per share.
Analysts warn that equity-financed Bitcoin purchases could erode shareholder value. VanEck’s digital asset research head, Matthew Sigel, cautioned in June that raising capital via stock issuance to buy BTC risks long-term dilution if share prices fall.
Bitcoin treasury race heats up
The move comes amid a surge of so-called Bitcoin treasury companies, with more than 190 publicly traded firms holding BTC in 2025, up from fewer than 100 at the start of the year. The market has ballooned to $112.8 billion, though most of it remains concentrated in Michael Saylor’s MicroStrategy, which controls 68% of the sector.
GD Culture had already signalled its crypto ambitions in May, announcing plans to raise up to $300 million through stock sales to invest in Bitcoin and even the Trump memecoin (TRUMP). The company previously received a Nasdaq noncompliance warning over low shareholder equity.
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