Key Takeaways:
- GD Culture shares fell 28% after announcing a $875M Bitcoin acquisition via a major share issuance, triggering investor concerns over dilution.
- The firm will acquire 7,500 BTC and become the 14th largest public Bitcoin holder, as part of a broader crypto treasury strategy.
- Market sentiment on Bitcoin treasury models is cooling, with analysts warning of capital erosion risks tied to equity-funded crypto buys.
Shares of GD Culture Group (GDC), a Nasdaq-listed livestreaming and e-commerce company, plunged 28% on Tuesday after announcing a major Bitcoin acquisition.
The firm agreed to issue about 39.2 million shares in exchange for Pallas Capital Holding’s assets, including 7,500 Bitcoin valued at roughly $875 million.
JUST IN: Publicly traded GD Culture Group ($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
CEO Xiaojian Wang said the purchase supports GD Culture’s strategy of building a “strong and diversified crypto treasury”, positioning the company as the 14th largest publicly traded Bitcoin holder.
Despite Bitcoin’s growing institutional adoption, investor reaction was negative, largely due to dilution concerns from the massive share issuance.
GDC closed at $6.99, with a slight 3.7% after-hours rebound, cutting its market cap to $117.4 million.
The drop marked its steepest one-day fall in over a year, adding to a 97% decline from its 2021 all-time high of $235.80.
Analysts, including VanEck, warned that raising capital through stock or debt to buy Bitcoin may erode shareholder value if falling prices undermine treasury holdings.
In May, GD Culture revealed plans to raise up to $300 million for digital asset investments, after receiving a Nasdaq noncompliance notice tied to low equity.
About The Author
Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.
His articles offer a deep dive into the latest trends, projects, and technological advancements shaping the future of digital finance.
Check Efe out on:
