GD Culture Shares Plunge 28% After $875M Bitcoin Deal In Latest Setback For BTC-Buying Firms
GD Culture shares plummeted 28% yesterday after announcing an $875 million Bitcoin acquisition, marking the latest setback for corporate crypto buyers.
The drop follows a broader wave of turbulence hitting corporate Bitcoin investors, including Michael Saylor’s Strategy, Japan’s Metaplanet, and KindlyMD, whose shares have all declined sharply despite ongoing BTC accumulation.
GD Culture, a Nasdaq-listed livestreaming and e-commerce firm, said it will acquire 7,500 BTC from Pallas Capital Holding, issuing nearly 39.2 million shares for the assets.
The purchase would make GD Culture the 14th-largest corporate Bitcoin holder, surpassing Galaxy Digital Holdings and just below Jack Dorsey’s Block Inc., according to Bitcoin Treasuries.
CEO Xiaojian Wang said the deal aims to build a “strong and diversified crypto asset reserve.”
“The correction reflects short-term volatility, not the long-term value of corporate Bitcoin reserves,” Wang said, emphasizing the firm’s continued commitment to its crypto strategy.
GD Culture share price (Source: Google Finance)
Despite the steep drop in the company’s share price over the past 24 hours, its stock is still up 23% in the past week and more than 133% in a month, according to Google Finance.
Corporate Bitcoin Holders Hit By Turbulence
GD Culture’s share price plunge is the latest in a series of similar developments in recent weeks.
The largest corporate BTC investor, Strategy, has seen its stocks tumble over 7% in the last month. Despite this, the company has continued its aggressive accumulation of Bitcoin.
Earlier this week, Saylor said that Strategy bought another 525 BTC for around $60.2 million. This has pushed the firm’s holdings to 638,985 BTC.
Similarly, Japan-based firm Metaplanet, which is the largest corporate BTC holder in Asia and ranked as the sixth-biggest globally with its 20,136 BTC, has also had its shares hit with strong sell pressure over the past thirty days.
As a result, the firm’s stock price has fallen 34% during this period.
Shares for new entrant KindlyMD, which merged with Nakamoto Holdings last month, have plunged over 74% since the two announced the merger.
KindlyMD’s CEO David Bailey addressed concerns that crypto “treasury mania is over” in a Sept. 16 X post.
According to him, “the treasury play is just getting started.” He said that critics’ “lack of vision” is why they missed the trend when it started and “will miss it next time.”
Bailey also sent a letter to shareholders in which he said the company is entering into a “transition” period that will see investors who are more aligned with KindlyMD’s long-term vision of accumulating digital assets.
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