GD Culture Shares Drop 28% After Bitcoin Deal With Pallas Capital

GD Culture Group (GDC) experienced a 28% drop in shares after a Bitcoin acquisition deal with Pallas Capital. This is the largest decline for GDC in the past year, lowering its market cap to $117.4 million.

Key Points of the Acquisition

Shares fell to $6.99 on September 16, marking a significant drop from its all-time high of $235.80 on February 19, 2021.
The deal involves issuing approximately 39.2 million shares to acquire 7,500 BTC, valued at $875.4 million, from Pallas Capital.
CEO Xiaojian Wang stated that this move supports building a diversified crypto asset reserve and aligns with growing institutional acceptance of Bitcoin as a reserve asset.
The share dilution has led to reduced ownership percentages among existing shareholders but is part of GDC's strategy to increase Bitcoin holdings.

Trend of Bitcoin Treasury Companies

GD Culture has become the 14th largest publicly listed Bitcoin holder.
Capital B, Europe's first Bitcoin treasury company on Euronext Growth Paris, acquired 48 BTC worth about $5.6 million through multiple fundraising rounds.
Funds were raised through capital increases at varying prices per share, involving acquisitions totaling 48 BTC.

For more details on cryptocurrencies like Bitcoin, visit Bitcoin page.