The actions of the company live and the electronic commerce GD Culture Group fell by 28% on Tuesday after having announced a shares agreement to acquire all the assets of Pallas Capital Holding, including 7,500 bitcoin.
The GD culture will issue nearly 39.2 million ordinary shares in exchange for assets of all Pallas capital, including $ 875.4 million in Bitcoin (BTC), the firm announced on Tuesday. The agreement was concluded last Wednesday.
The CEO and president of GD Culture, Xiaojian Wang, declared that the agreement “would directly support” its plan to build a “reserve of strong and diversified crypto assets” while benefiting from the growing institutional acceptance of bitcoin as a reserve and value reserve.
The company uses artificial intelligence to create false people and manages a live delivery company and electronic commerce via Tiktok. Its acquisition would make it the 14th largest Bitcoin holder on the balance sheet, joining a trend in companies that buy a cryptocurrency.
The so -called Bitcoin cash companies increased in 2025, with more than 190 listed companies which now hold the assets, against less than 100 at the start of the year. The market increased to $ 112.8 billion, dominated by Michael Saylor’s strategy with a share of 68%.
However, Momentum has recently declined, because some investors fear that the strategy of raising capital, converting it into a bitcoin and waiting for the appreciation is not durable.
GD culture stock tanks
GDC Culture Group (GDC) actions fell from 28.16% on Tuesday to $ 6.99, according to Google financing data. The shares recovered slightly in the exchanges after the opening hours, up 3.7%.
He marked the greatest drop in GDC in more than 12 months, spending market capitalization to $ 117.4 million. The actions of the company are now at 97% reduction on its summit of $ 235.80 on February 19, 2021.
Companies’ dilution actions often trigger negative reactions on the market because they reduce the percentage of ownership among existing shareholders.
Vaneck warned on June 16 that companies funding Bitcoin purchases by issue stocks or debt can be faced with capital erosion if their share of shares decrease, because the value of their Bitcoin assets may not be sufficient to support new investments without harming existing shareholders.
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“As some of these companies increase capital thanks to major market programs (ATM) to buy BTC, a risk emerges: if the action is negotiated or near the Nav (net value of assets), the emission of equity can dilute rather than create Vaneck value to research on digital assets, Matthew Sigel, at the time.
GD Culture threw views of Bitcoin, Trump Memecoin in May
GD Culture announced its cryptographic treasure strategy in May, when she said she was planning to sell up to $ 300 million in her ordinary shares to invest in the crypto, including Bitcoin and the official Trump (Trump) Trump Trump Trump.
The original offer was announced more than a month after the company received a non-compliance warning from the NASDAQ linked to its equity in less than $ 2.5 million.
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