Hong Kong-based DDC Enterprise has made headlines after announcing it has secured an impressive $124 million in equity funding aimed at bolstering its Bitcoin holdings. Following the news, shares of the digital food company saw an uptick of approximately 3.5% in Wednesday trading, bringing its stock price closer to $9 per share. This represents an astonishing rise of nearly 105% since the beginning of the year, largely attributed to the company’s strategic decision to build a treasury consisting of 10,000 Bitcoins, valued at over $1.2 billion based on current BTC prices.
The investment round was primarily led by PAG Pegasus Fund and Mulana Investment Management, with support from OKG Financial Services Limited. DDC’s founder and CEO, Norma Chu, expressed her enthusiasm over the funding, stating that it not only provides essential capital but also adds significant strategic value and momentum. “We are proud to welcome PAG Pegasus Fund, OKG, and Mulana as strategic partners and shareholders, representing some of the most admired names in global finance and digital assets,” Chu remarked. She emphasized that their investment serves as a strong endorsement of the firm’s vision and the increasing significance of public Bitcoin treasuries.
Initially known for sharing Asian recipes and cooking tutorials, DDC Enterprise has pivoted towards accumulating Bitcoin, especially following a previous slump in its stock price that had seen it dip below $2 earlier this year. To date, the company has successfully secured 1,058 BTC, which is worth approximately $130 million at current market values.
The broader crypto landscape has also been witnessing significant developments, with other firms adopting similar treasury strategies. Notably, software company Strategy, formerly MicroStrategy, has become a prominent player in this arena, allowing shareholders to gain exposure to Bitcoin through its stock. This approach has seen its stock price soar by nearly 1,900% since embracing the strategy in 2020. Various companies listed on the Nasdaq are diversifying their crypto portfolios, investing in assets like Ethereum, XRP, and Solana to enhance shareholder returns.
However, not all entities have had a smooth experience with the crypto treasury strategy. The Securities and Exchange Commission recently halted trading of digital advertising firm QMMM Holdings after its stock skyrocketed over 2,000% following news of its own pivot towards a crypto treasury. The regulator is currently investigating potential manipulation surrounding the company’s stock performance.
As DDC Enterprise presses forward with its ambitious plans to build a substantial Bitcoin treasury, the company continues to be a part of an evolving landscape where digital assets are increasingly viewed as viable holdings by corporate entities.
