Shares within the livestreaming and e-commerce firm GD Culture Group fell 28% on Tuesday after saying a share deal to accumulate all of the property from Pallas Capital Holding, together with 7,500 Bitcoin.
GD Culture will problem practically 39.2 million shares of its widespread inventory in alternate for all Pallas Capital’s property, together with $875.4 million value of Bitcoin (BTC), the agency mentioned on Tuesday. The deal was made final Wednesday.
GD Culture’s CEO and chairman, Xiaojian Wang, mentioned the deal would “straight assist” its plan to construct a “sturdy and diversified crypto asset reserve” whereas benefiting from Bitcoin’s rising institutional acceptance as a reserve asset and retailer of worth.
The firm makes use of synthetic intelligence to create faux folks and runs a livestreaming and e-commerce enterprise by way of TikTok. Its acquisition would make it the 14th largest publicly listed Bitcoin holder, becoming a member of a development of corporations which are shopping for up cryptocurrency.
So-called Bitcoin treasury firms have surged in 2025, with greater than 190 publicly listed firms now holding the asset, up from fewer than 100 at first of the 12 months. The market has grown to $112.8 billion, dominated by Michael Saylor’s Strategy with a 68% share.
However, momentum has waned lately, as some buyers fear that the technique of elevating capital, changing it into Bitcoin, and ready for appreciation might not be sustainable.
GD Culture inventory tanks
Shares in GD Culture Group (GDC) fell 28.16% on Tuesday to $6.99, Google Finance information exhibits. Shares recovered barely in after-hours buying and selling, rising 3.7%.
It marked GDC’s largest fall in over 12 months, sinking its market cap to $117.4 million. Shares within the firm at the moment are 97% off its all-time excessive of $235.80 set on Feb. 19, 2021.
Diluting firm shares typically triggers unfavorable market reactions because it reduces possession proportion amongst present shareholders.
VanEck warned on June 16 that firms financing Bitcoin purchases by means of inventory issuance or debt could face capital erosion if their inventory costs fall, as the worth of their Bitcoin holdings might not be sufficient to assist new investments with out harming present shareholders.
Related: Chinese Bitcoin treasury agency eyes promoting $500M of inventory for BTC
“As a few of these firms elevate capital by means of giant at-the-market (ATM) packages to purchase BTC, a danger is rising: If the inventory trades at or close to NAV [net asset value], continued fairness issuance can dilute somewhat than create worth,” VanEck’s head of digital property analysis, Matthew Sigel, mentioned on the time.
GD Culture set sights on Bitcoin, Trump memecoin in May
GD Culture introduced its crypto treasury technique in May, when it mentioned it deliberate to promote as much as $300 million of its widespread inventory to put money into crypto, together with Bitcoin and President Donald Trump’s Official Trump (TRUMP) token.
The inventory providing was introduced over a month after the agency obtained a noncompliance warning from Nasdaq associated to its stockholder fairness being beneath the minimal requirement of $2.5 million.
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