GD Culture Group Declines 28% Following Acquisition of 7,500 Bitcoin Through Pallas Capital Agreement

GD Culture Group’s shares fell by 28% on Tuesday after the announcement that the company is set to acquire 7,500 Bitcoin through a share-based arrangement with Pallas Capital Holding.

Key Takeaways:

• GD Culture Group is set to obtain 7,500 Bitcoin through an $875 million share transaction with Pallas Capital, leading to a 28% decline in stock value.
• The firm intends to establish a reserve of crypto assets, but investors are apprehensive about potential share dilution and speculative risks.
• GD Culture is joining an expanding roster of public companies that hold Bitcoin, despite ongoing regulatory and financial uncertainties.

The livestreaming and e-commerce company disclosed that it would issue 39.2 million common shares in exchange for Pallas Capital’s assets, which include roughly $875 million worth of Bitcoin.

This transaction, finalized last Wednesday, signifies a notable change in GD Culture’s strategic focus.

GD Culture CEO States Bitcoin Acquisition Aims to Create Diverse Crypto Reserve

CEO Xiaojian Wang indicated that the acquisition aligns with the company’s objective of establishing a diversified crypto asset reserve, pointing to the growing institutional adoption of Bitcoin as a significant factor.

Despite the optimistic outlook, the market reacted with doubt. GD Culture Group (GDC) shares fell to $6.99, marking its largest single-day drop in over a year, as reported by Google Finance.

Shares experienced a slight recovery in after-hours trading but remain down 97% from their peak of $235.80 in February 2021. The company’s market capitalization now stands at approximately $117.4 million.

Investors seem to be worried about the dilution resulting from the issuance of new shares. Such actions often raise concerns, especially when associated with speculative strategies like Bitcoin acquisition.

VanEck had previously cautioned that companies funding crypto purchases through stock offerings might diminish shareholder value if their market price falls below the value of their assets.

GD Culture’s decision aligns it with an increasing number of “Bitcoin treasury” firms, which are public companies that maintain BTC on their balance sheets.

JUST IN: Publicly traded GD Culture Group ($GDC) to acquire Pallas Capital Holding along with its 7,500 #Bitcoin, positioning GDC to become one of the biggest players in BTC treasury strategy. pic.twitter.com/5jpCu6mot5

— BitcoinTreasuries.NET (@BTCtreasuries) September 16, 2025

This trend has accelerated in 2025, with more than 190 public companies now holding Bitcoin, an increase from fewer than 100 at the start of the year. The market is still primarily led by MicroStrategy, which holds nearly 70% of the total.

GD Culture first disclosed its intentions in the crypto space in May, announcing plans to raise $300 million to invest in digital assets, including Bitcoin and the Trump-themed memecoin TRUMP.

This announcement followed closely after the firm received a Nasdaq warning for falling below the $2.5 million minimum equity requirement.

Strategy Tops Corporate Bitcoin Holdings with 636,505 BTC

Michael Saylor’s Strategy currently possesses 636,505 BTC, making it the largest corporate holder by a significant margin.

Bitcoin mining company MARA Holdings ranks second with 52,477 BTC, having added 705 BTC in August.

However, new entrants are making progress. XXI, founded by Strike CEO Jack Mallers, has accumulated 43,514 BTC, while the Bitcoin Standard Treasury Company holds 30,021 BTC.

Other notable players include crypto exchange Bullish (24,000 BTC), Metaplanet (20,000 BTC), and publicly listed entities such as Riot Platforms, Trump Media & Technology Group, CleanSpark, and Coinbase.

This surge in accumulation has sparked speculation regarding a potential supply shock. With only 5.2% of Bitcoin’s capped 21 million supply remaining to be mined, sustained corporate demand could push prices even higher.

Some firms are setting ambitious targets. Japan’s Metaplanet and U.S.-based Semler Scientific aim for 210,000 BTC and 105,000 BTC by 2027, which is ten to twenty times their current holdings.

Globally, 120 public companies now hold Bitcoin outside the US. Countries such as Canada, the UK, Hong Kong, Mexico, South Africa, and Bahrain are witnessing a rise in corporate BTC ownership.

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