Shares to the livestreaming and e-commerce company GD Culture Group fell 28% on Tuesday after announcing a sharing deal to capture all properties from Pallas Capital Holding, including 7,500 Bitcoin.
GD culture will release nearly 39.2 million sharing its standard stock in exchange for all Pallas Capital possessions, including $ 875.4 million worth of bitcoin (Btc), the firm Says on Tuesday. The deal was made on Wednesday.
CEO and Chairman of GD Culture Xiaojian Wang, said the deal will “directly support” its plan to build a “strong and varied crypto asset” while benefiting from the growing acceptance of the Bitcoin institution as a reserves of property and value store reserves.
The company uses artificial intelligence to create fake people and runs a livestreaming and e-commerce business through Tiktok. Getting it will make the 14th largest public -listed Bitcoin holder, who joins a trend of cryptocurrency -buying companies.
The so -called Bitcoin treasury companies moved forward in 2025, with more of 190 The public listed today are holding possession, from fewer than 100 at the beginning of the year. The market has grown to $ 112.8 billion, managed by Michael Saylor’s approach with a 68% part.
However the momentum has been lost recently, as Some investors are concerned That the approach of raising capital, converting it to Bitcoin, and the wait for appreciation may not be maintained.
Gd culture stock tanks
Shares to the GD Culture Group (GDC) fell 28.16% on Tuesday to $ 6.99, Google Finance Data Shut up. Shares recover slightly in trade after time, rising by 3.7%.
It marked the biggest collapse of the GDC in 12 months, its market cap sank for $ 117.4 million. Company shares are now 97% from all times high $ 235.80 set on Feb. 19, 2021.
The company shares frequently triggered negative reactions to the market Because it reduces the percentage of ownership of existing shareholders.
Vaneck warns on June 16 that companies funding Bitcoin purchases by stock issuance or debt may Face Capital Erosion If their stock prices have fallen, as the cost of their Bitcoin handles may not be enough to support new investments without harming existing shareholders.
Related: Chinese Bitcoin Treasury Firm Eyes selling $ 500m of stock for BTC
“While some of these companies are increasing capital through large AT-the-Market (ATMs) programs to buy BTC, a risk is emerging: if the stock is trading at or near the NAV (net asset value), the constant release of equity can dissolve instead of creating value,” the leader of the Digital Research Assets, Matthew Sigel, said time.
GD culture sets views in Bitcoin, Trump’s Memecoin in May
GD culture revealed this Crypto treasury approach in MayWhen it said it planned to sell up to $ 300 million of its usual stock to invest in crypto, with Bitcoin and President Donald Trump’s Official Trump (Trump) token.
Stock’s offer was announced within a month after the company received a disagreement Warning From Nasdaq related to stockholder equity below the minimum required of $ 2.5 million.
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