GD Culture Group (NASDAQ: GDC) just made a bold bet on Bitcoin. The U.S.- and China-based livestreaming and e-commerce company has acquired 7,500 BTC worth about $875.4 million in a share exchange with Pallas Capital Holding Ltd., a firm registered in the British Virgin Islands.
To close the deal, GD Culture issued 39.2 million new shares of its common stock an aggressive move that left investors spooked, sending GDC’s stock price plunging more than 28% after the announcement on Tuesday.
Building a Bitcoin War Chest
This acquisition marks GD Culture’s first major step into digital assets. The company now ranks as the 14th largest corporate Bitcoin holder, leapfrogging Galaxy Digital Holdings (which holds 6,894 BTC).
In its filing, GD Culture emphasized that the Bitcoin it acquired is “free and clear of any encumbrances,” meaning no hidden debts or legal claims are tied to the assets. Alongside the BTC purchase, the firm also took full ownership of all outstanding shares of Pallas Capital.
Xiaojian Wang, who is spearheading GD Culture’s crypto treasury push, framed the deal as a foundation for the company’s long-term strategy:
“When we integrate these assets, we are building the reserves necessary to execute on our digital asset strategy with both stability and growth potential. Looking ahead, we are confident that this acquisition will deliver meaningful value to our shareholders as we continue to execute our vision of becoming an established player in the digital asset ecosystem.”
Market Reaction: Excitement Meets Dilution
Despite the grand vision, Wall Street wasn’t impressed. The stock’s sharp drop reflects concerns over shareholder dilution, as issuing tens of millions of new shares can erode the value of existing holdings.
Matthew Sigel, head of digital assets research at VanEck, cautioned that such moves could backfire if market sentiment sours:
“Once you are trading at NAV, shareholder dilution is no longer strategic. It is extractive.”
According to Google Finance, Tuesday’s drop was the steepest in over a year.
A Growing Trend
This isn’t GD Culture’s first nod to Bitcoin. Back in May, the company revealed plans to sell $300 million worth of common stock to fund crypto purchases.
They’re also not alone. The number of public companies stacking Bitcoin has been climbing steadily in 2025. As of September 17, more than 190 listed firms hold BTC on their balance sheets together amassing over 1 million Bitcoin.
Whether GD Culture’s bold move will pay off depends on both Bitcoin’s long-term trajectory and how investors stomach the dilution risk. For now, the company has placed itself firmly on the map as a serious player in the corporate Bitcoin treasury race.
