2 hours ago
Shares successful the livestreaming and e-commerce institution GD Culture Group fell 28% connected Tuesday aft announcing a stock woody to get each the assets from Pallas Capital Holding, including 7,500 Bitcoin.
GD Culture volition contented astir 39.2 cardinal shares of its communal banal successful speech for each Pallas Capital’s assets, including $875.4 cardinal worthy of Bitcoin (BTC), the steadfast said connected Tuesday. The woody was made past Wednesday.
GD Culture’s CEO and chairman, Xiaojian Wang, said the woody would “directly support” its program to physique a “strong and diversified crypto plus reserve” portion benefiting from Bitcoin’s increasing organization acceptance arsenic a reserve plus and store of value.
The institution uses artificial quality to make fake radical and runs a livestreaming and e-commerce concern via TikTok. Its acquisition would marque it the 14th largest publically listed Bitcoin holder, joining a inclination of firms that are buying up cryptocurrency.
Source: BitcoinTreasuries.NET
So-called Bitcoin treasury companies person surged successful 2025, with much than 190 publically listed companies present holding the asset, up from less than 100 astatine the commencement of the year. The marketplace has grown to $112.8 billion, dominated by Michael Saylor’s Strategy with a 68% share.
However, momentum has waned recently, arsenic some investors worry that the strategy of raising capital, converting it into Bitcoin, and waiting for appreciation whitethorn not beryllium sustainable.
GD Culture banal tanks
Shares successful GD Culture Group (GDC) fell 28.16% connected Tuesday to $6.99, Google Finance data shows. Shares recovered somewhat successful after-hours trading, rising 3.7%.
It marked GDC’s largest autumn successful implicit 12 months, sinking its marketplace headdress to $117.4 million. Shares successful the institution are present 97% disconnected its all-time precocious of $235.8 acceptable connected Feb. 19, 2021.
Change successful GDC shares connected Tuesday, including after-hours. Source: Google Finance
Diluting institution shares often triggers negative marketplace reactions arsenic it reduces ownership percent among existing shareholders.
VanEck warned connected June 16 that companies financing Bitcoin purchases done banal issuance oregon indebtedness whitethorn face superior erosion if their banal prices fall, arsenic the worth of their Bitcoin holdings whitethorn not beryllium capable to enactment caller investments without harming existing shareholders.
Related: Chinese Bitcoin treasury steadfast eyes selling $500M of banal for BTC
“As immoderate of these companies rise superior done ample at-the-market (ATM) programs to bargain BTC, a hazard is emerging: If the banal trades astatine oregon adjacent NAV [net plus value], continued equity issuance tin dilute alternatively than make value,” said VanEck's caput of integer assets research, Matthew Sigel, astatine the time.
GD Culture acceptable sights connected Bitcoin, Trump memecoin successful May
GD Culture announced its crypto treasury strategy successful May, erstwhile it said it planned to merchantability up to $300 cardinal of its communal banal to put successful crypto, including Bitcoin and President Donald Trump’s Official Trump (TRUMP) token.
The banal offering was announced implicit a period aft the steadfast received a noncompliance warning from Nasdaq related to its stockholder equity being beneath the minimum request of $2.5 million.
Magazine: Astrology could marque you a amended crypto trader: It has been foretold
English (US) 