Nasdaq-listed GD Culture Group has acquired 7,500 Bitcoin as part of a share exchange agreement with Pallas Capital Holding, a British Virgin Islands-registered company.
Summary
- GD Culture Group has acquired 7,500 Bitcoin through a share exchange deal with Pallas Capital Holding.
- The live streaming company issued 39.2 million shares to complete the $875.4 million acquisition.
- GDC shares fell more than 28% after the announcement.
GD Culture Group, a livestreaming and e-commerce company with operations across the United States and China, said in a Sep. 16 disclosure that it will issue approximately 39.2 million shares of its common stock for all of Pallas Capital’s assets.
Assets involved include 875.4 million worth of Bitcoin, which amounts to 7500 BTC, which the company said is “free and clear of any encumbrances.” Meaning the assets are not subject to any legal claims, debts, liens, collateral agreements, or restrictions that could limit GDC’s ownership or ability to use them.
The acquisition was completed last Wednesday, and GD Culture will also acquire 100% of the issued and outstanding ordinary shares of Pallas Capital Holding Ltd.
With this addition, GD Culture becomes the 14th largest corporate Bitcoin holder, surpassing Galaxy Digital Holdings, which has 6,894 BTC in its coffers according to data from Bitcoin Treasuries.
According to Xiaojian Wang, who is leading the company’s efforts to establish a cryptocurrency-funded treasury, the deal “supports [GD Culture’s] initiative to build a strong and diversified crypto asset reserve by acquiring scalable, high-value digital assets.
“When we integrate these assets, we are building the reserves necessary to execute on our digital asset strategy with both stability and growth potential. Looking ahead, we are confident that this acquisition will deliver meaningful value to our shareholders as we continue to execute our vision of becoming an established player in the digital asset ecosystem.”
Shares plunge after Bitcoin acquisition
Even though the intention is to enhance shareholder value, stakeholders have failed to share the same enthusiasm, with the company’s shares tumbling more than 28% on Tuesday before clawing back slightly after hours.
Shareholders may be concerned that the heavy dilution tied to funding Bitcoin purchases could erode long-term value, as seen with some other companies that have leaned heavily on the Bitcoin treasury strategy.
Experts like VanEck’s head of digital assets research, Matthew Sigel, have issued warnings that issuing stock near net asset value can leave existing investors exposed if market sentiment turns sour.
“Once you are trading at NAV, shareholder dilution is no longer strategic. It is extractive,” he warned.
Data from Google Finance shows that the latest drop was the largest in over 12 months.
GD Culture first announced its treasury strategy in May when it said it would sell $300 million of its common stock to fund its crypto buys.
That being said, the number of Bitcoin treasury companies has grown at a steady pace this year, and currently, over 190 publicly listed firms are on the list of corporate Bitcoin stackers. Together, these companies have accumulated over 1 million BTC as of Sep. 17, 2025.
Source: https://crypto.news/gd-culture-acquires-7500-bitcoin-via-875m-share-deal-shares-plunge-28/
