Nasdaq-listed GD Culture announces $787.5 million Bitcoin acquisition... stock plunges

Live-streaming and e-commerce company GD Culture Group saw its stock plunge 28% immediately after announcing a $787.5 million Bitcoin acquisition deal.

On the 17th (local time), Cointelegraph reported that GD Culture said it would issue about 39.2 million common shares to acquire all of Pallas Capital's assets, namely assets including 7,500 Bitcoin. The deal was made last Wednesday. Xiaojian Wang, CEO and chairman of GD Culture, said the deal would "directly support plans to build a strong and diversified digital asset (cryptocurrency) reserve."

With this acquisition, GD Culture is expected to become the 14th-largest Bitcoin-holding publicly listed company. Companies adopting Bitcoin treasury strategies have surged in 2025, increasing to more than 190, and the market size has reached $112.8 billion. However, some investors have recently expressed concerns about the sustainability of Bitcoin purchase strategies financed through share issuance or debt raising.

Immediately after the deal was announced, GD Culture's stock plunged 28.16% to $6.99, marking the largest drop in the past year. After the market close it rebounded 3.7%, but market capitalization fell to $117.4 million. The current share price is 97% below the record high of $235.80 set in February 2021.

In May, GD Culture announced a crypto reserve strategy and said it planned to invest in Bitcoin and President Donald Trump's official meme coin TRUMP token through share issuance of up to $300 million. However, earlier it had received a regulatory warning from Nasdaq for having shareholders' equity below the minimum requirement of $2.5 million.