The post GD Culture Share Tanks Nearly 28% Following Bitcoin Treasury Move appeared on BitcoinEthereumNews.com. GD Culture shares plunge 28% after announcing $875M Bitcoin acquisition via 39.2M new share issuance. Purchase from Pallas Capital adds 7,500 BTC, making GDC the 14th largest public Bitcoin holder. Nasdaq-traded livestreaming firm GD Culture Group had its worst trading day in more than a year, falling 28% after declaring an $875 million acquisition of Bitcoin. The stock crash followed when investors came to know that the company would sell almost 39.2 million new shares to close the cryptocurrency buy transaction. The livestreaming company, which uses artificial intelligence, entered into an agreement with Pallas Capital Holding to purchase all assets, including 7,500 Bitcoin tokens valued at around $875.4 million. This acquisition makes GD Culture the 14th largest publicly traded corporate Bitcoin holder in the marketplace. Market Concerns Over Share Dilution Strategy On Tuesday, GD Culture shares fell to $6.99, the company’s highest drop since the beginning of 2024 and a drop in market value to $117.4 million. After-hours trading saw shares regain some ground, up 3.7% as some investors considered the drastic fall to be a potentially oversold situation. The large share issue dilutes the ownership rights of the current shareholders, which provokes a mass panic among investors regarding the feasibility of the Bitcoin treasury corporate policies. VanEck had already cautioned that firms funding the buying of cryptocurrency by diluting equity risk, losing shareholder value in the event of a sharp drop in stock prices. CEO Xiaojian Wang justified the acquisition, saying it would directly facilitate the creation of a strong and diversified crypto asset reserve and the opportunity to capitalize on the institutional adoption of Bitcoin. The company provides e-commerce applications based on AI-generated virtual personalities on TikTok-based livestreaming services. This acquisition is part of a larger corporate trend of adopting Bitcoin, as publicly listed companies that hold the… The post GD Culture Share Tanks Nearly 28% Following Bitcoin Treasury Move appeared on BitcoinEthereumNews.com. GD Culture shares plunge 28% after announcing $875M Bitcoin acquisition via 39.2M new share issuance. Purchase from Pallas Capital adds 7,500 BTC, making GDC the 14th largest public Bitcoin holder. Nasdaq-traded livestreaming firm GD Culture Group had its worst trading day in more than a year, falling 28% after declaring an $875 million acquisition of Bitcoin. The stock crash followed when investors came to know that the company would sell almost 39.2 million new shares to close the cryptocurrency buy transaction. The livestreaming company, which uses artificial intelligence, entered into an agreement with Pallas Capital Holding to purchase all assets, including 7,500 Bitcoin tokens valued at around $875.4 million. This acquisition makes GD Culture the 14th largest publicly traded corporate Bitcoin holder in the marketplace. Market Concerns Over Share Dilution Strategy On Tuesday, GD Culture shares fell to $6.99, the company’s highest drop since the beginning of 2024 and a drop in market value to $117.4 million. After-hours trading saw shares regain some ground, up 3.7% as some investors considered the drastic fall to be a potentially oversold situation. The large share issue dilutes the ownership rights of the current shareholders, which provokes a mass panic among investors regarding the feasibility of the Bitcoin treasury corporate policies. VanEck had already cautioned that firms funding the buying of cryptocurrency by diluting equity risk, losing shareholder value in the event of a sharp drop in stock prices. CEO Xiaojian Wang justified the acquisition, saying it would directly facilitate the creation of a strong and diversified crypto asset reserve and the opportunity to capitalize on the institutional adoption of Bitcoin. The company provides e-commerce applications based on AI-generated virtual personalities on TikTok-based livestreaming services. This acquisition is part of a larger corporate trend of adopting Bitcoin, as publicly listed companies that hold the…