Shares of GD Culture Group experienced a shocking decline of 28% on Tuesday following the announcement of a significant acquisition deal involving 7,500 Bitcoin. The company revealed that it is executing a share-based transaction valued at approximately $875 million with Pallas Capital Holding. The stock dropped to $6.99, marking its steepest single-day decline in over a year and leaving it down a staggering 97% from its February 2021 peak of $235.80. Currently, the firm’s market capitalization stands at just $117.4 million.
The livestreaming and e-commerce company plans to issue 39.2 million common shares to finance the acquisition of Pallas Capital’s assets, which prominently include a large quantity of Bitcoin. Despite GD Culture’s CEO Xiaojian Wang describing the move as a strategy to build a diversified crypto asset reserve, investor sentiment has been notably cautious. Concerns are primarily centered around share dilution and the potential speculative implications associated with accumulating Bitcoin. Such anxieties are understandable, given previous warnings from VanEck that companies using stock offerings to finance crypto purchases risk eroding shareholder value, especially if market prices fall below the assets’ actual value.
GD Culture’s latest acquisition aligns the firm with a growing number of public companies adopting a “Bitcoin treasury” strategy. In 2025 alone, the number of publicly traded firms holding Bitcoin has surged to over 190, doubling from under 100 at the start of the year. MicroStrategy continues to dominate this space, holding nearly 70% of the total corporate Bitcoin holdings. Notably, GD Culture initially announced its intent to invest in digital assets, including Bitcoin and alternative assets, in May. This was shortly after the company received a warning from Nasdaq regarding its equity falling below the required minimum threshold.
In the broader landscape, other companies are also increasing their Bitcoin reserves. For example, Michael Saylor’s corporate strategy firm has amassed 636,505 BTC, making it the largest corporate Bitcoin holder by a wide margin. Other notable players include MARA Holdings and XXI, which have also reported significant holdings. Speculation is mounting around a potential supply shock as just 5.2% of Bitcoin’s capped total supply remains to be mined, raising concerns that continued demand from corporations could further elevate Bitcoin prices.
Additionally, outside the U.S., Bitcoin ownership is expanding among public companies in various countries, including Canada, the UK, Hong Kong, and South Africa. With ambitious acquisition targets set by several firms, the landscape of corporate Bitcoin ownership appears primed for continued transformation in the coming years.
