Key Notes
- After acquiring 48 BTC from Pallas Capital, GDC shares tanked by 28% on Sept 16.
- This marks the largest dip that the company has seen in the last 12 months.
- The number of Bitcoin treasury companies has increased significantly in 2025.
Shortly after GD Culture Group (GDC) made a Bitcoin
BTC
$116 142
24h volatility:
0.8%
Market cap:
$2.31 T
Vol. 24h:
$43.26 B
acquisition deal with Pallas Capital, its shares fell by about 28%.
This has been designated the largest fall that the shares have experienced over the last 12 months. Google Finance data showed that there was a slight recovery of 3.7% in pre-market trading.
GD Culture Sells Shares to Acquire 48 Bitcoin
According to Google Finance, shares in GD Culture Group fell 28.16% on September 16 to hit $6.99. This became the GDCโs largest fall in over 12 months, triggering a notable sink in its market cap to $117.4 million.
Unfortunately, the dip positioned the company at 97% off its all-time high (ATH) of $235.80, which it recorded on February 19, 2021.
A new Bitcoin acquisition deal may have โset off the alarmโ on the share price drop. The livestreaming company had made a strategic deal to swap tens of millions of its shares to acquire 7,500 BTC from Pallas Capital.
GD Culture plans to issue roughly 39.2 million shares of its common stock and exchange them for all of Pallas Capitalโs assets.
Among Pallasโ assets is $875.4 million worth of Bitcoin. Xiaojian Wang, the CEO and Chairman of GD Culture, acknowledged that this deal will โdirectly supportโ its plan to build a โstrong and diversified crypto asset reserve.โ
He also said it would play a role in positioning the firm to benefit from growing institutional acceptance of BTC as a reserve asset and store of value.
The decline in GDC price is not entirely surprising, especially because dilution of the companyโs shares often fuels market reactions. It usually results in the ownership percentage among existing shareholders being reduced. The company is not perturbed by this setback as it plans to buy more Bitcoin by selling its common stock.
Growing Numbers of Bitcoin Treasury Companies
As the deal finally pulled through, GD Culture has now joined a trend of firms that have been busy buying up cryptocurrency. More precisely, it is the 14th largest publicly listed Bitcoin holder, while Michael Saylorโs Strategy remains at the top.
By a significant percentage, the number of Bitcoin treasury companies has increased this year.
A few days ago, Capital B confirmed the completion of multiple fundraising rounds to acquire 48 BTC worth approximately $5.6 million, in three tranches. This is Europeโs first Bitcoin treasury company listed on Euronext Growth Paris.
The company first finalized a capital increase at $2.03 per share, raising $2.12 million. These proceeds went into the purchase of 17 BTC valued at $2 million.
The second round was priced at $1.99 per share and raised $2.94 million. It was fully subscribed by the TOBAM Bitcoin Alpha Fund and was for the acquisition of 24 BTC worth $2.82 million.
Lastly, Fulgur Ventures subscribed to 1.25 million ordinary shares at $0.64 per share. This summed up to $824,000 and was directed to the acquisition of 7 BTC.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
