GD Culture’s Stock Tumbles later than $875M BTC Purchase Announcement
Listed on the later than its $875 million plan to purchase BTC, GD Culture’s stock fell by more than 28%. The company that does livestreaming and e-commerce said it would issue over 39.2 million common shares to purchase all of Pallas Capital Holding’s assets, which include 7,500 BTC (BTC).
As part of its larger digital transformation and treasury strategy, GD Culture is now focusing on building a strong and diverse crypto asset reserve.
Massive BTC Purchase and Market Response
When GD Culture bought BTC in mid-September 2025, it became the 14th largest publicly traded company in the world to own . The deal was worth about $875.4 million, but the market didn’t like it, and GD Culture’s share price dropped dramatically to $6.99 per share.
This was the worst drop in a single day in more than a year, bringing the company’s market worth down to around $117.4 million, which is almost 97% less than its all-time high in ahead 2021. The large number of new shares made present shareholders worried about dilution, which lowered their ownership percentage and led to a trade-off.
A Change in Strategy Toward Crypto Assets
Xiaojian Wang, the CEO and chairman of GD Culture, said that the BTC agreement fits with the company’s aim to take advantage of BTC’s growing acceptability as a reserve asset and store of value by institutions.
Earlier in May 2025, the company, which utilizes AI to make digital content and conducts e-commerce and livestreaming operations, said it was changing its focus in the crypto sector. noted at the time that it planned to trade up to $300 million in stock to pay for investments in BTC and other specialized cryptocurrencies, such as the Official Trump token (TRUMP).
Concerns From the Market and Analysts
GD Culture’s brave action puts it in a group of public companies that are building up their crypto reserves. By 2025, more than 190 corporations will possess more than a million BTCs, although the share issuance funding strategy raised some eyebrows.
Analysts say that using share dilution or debt issuance to purchase BTC is risky because if stock prices fall, the value of BTC holdings may not be enough to fund additional investments without hurting current shareholders.
Matthew Sigel, who is in charge of digital asset research, said that this dynamic was even stronger when he said that issuing shares close to net asset value can hurt shareholder value instead of adding to it. In fact, the drop in GD Culture’s stock price is mainly due to worries about how long the stock-issuance technique can be used to build up BTC reserves.
Even though the market reacted poorly right away, GD Culture’s foray into the field shows that the company is changing its approach to be more in line with developments in assets and institutional acceptance of crypto.
As more BTC treasury companies open in 2025, GD Culture’s significant investment shows that several mid-cap corporations are begining to believe that BTC could be a excellent long-term store of value despite the fact that investors and markets are still worried about the risks of dilution and execution hardys.
