CMC News

GD Culture Plunges 28% on $875 Million $BTC Deal

#Nasdaq-listed GD Culture Group shares dropped dramatically following the announcement of a major asset acquisition. The livestreaming company agreed to issue 39.2 million shares for Pallas Capital's complete asset portfolio.

The deal includes 7,500 $BTC worth approximately $875.4 million at current market prices. CEO Xiaojian Wang stated the acquisition directly supports plans to build a diversified cryptocurrency asset reserve.

GD Culture operates artificial intelligence-powered livestreaming and e-commerce businesses primarily through #TikTok. The $BTC acquisition would make it the 14th-largest publicly listed corporate holder of the cryptocurrency.

Share dilution triggered negative market reactions as existing ownership percentages decreased substantially. The company's stock fell 28.16% to $6.99, marking its largest single-day decline in over 12 months.

Market capitalization dropped to $117.4 million while shares remain 97% below their February 2021 all-time high. After-hours trading showed modest recovery with 3.7% gains following the initial sell-off.

#Bitcoin treasury companies have expanded rapidly in 2025, with over 190 publicly listed firms now holding the asset. This represents significant growth from fewer than 100 companies at the year's beginning.

Michael Saylor's #MicroStrategy dominates the market with a 68% share of the $112.8 billion sector. However, recent momentum has slowed as investors question the sustainability of convert-and-hold strategies.

VanEck analysts previously warned that companies financing purchases through stock issuance face #dilution risks. If share prices fall, $BTC holdings may not provide sufficient value to support continued investments.