7,500 Bitcoin Purchase Sends GD Culture Group Shares Tumbling 28%

GD Culture Group Limited (Nasdaq: GDC), a livestreaming and e-commerce firm, announced a $875 million acquisition of 7,500 Bitcoin through a share exchange deal with Pallas Capital Holding Ltd., issuing 39.2 million common shares. The move, aimed at bolstering its crypto asset treasury strategy, led to a dramatic 28% drop in its stock price to $6.99 on September 17, 2025, the steepest single-day decline in over a year, per Google Finance.

The acquisition positions GDC as the 14th largest publicly listed Bitcoin holder, aligning with a 2025 trend where over 190 public firms now hold Bitcoin, up from fewer than 100 earlier this year. CEO Xiaojian Wang emphasized that the deal supports GDC’s goal of building a diversified crypto reserve, capitalizing on Bitcoin’s growing role as a store of value.

However, investors expressed concerns over share dilution and Bitcoin’s volatility, with the stock’s market cap now at $117.4 million, down 97% from its February 2021 high of $235.80. The deal follows GDC’s May 2025 announcement to raise $300 million for crypto investments, including Bitcoin and Trump-themed memecoin TRUMP, despite a Nasdaq warning for low equity.

Analysts suggest the stock could rebound if Bitcoin, valued at $116,000 per unit in September 2025, sustains its upward trend. GDC’s pivot to decentralized finance (DeFi) aims for long-term growth, but short-term market skepticism highlights the risks of heavy crypto exposure. Investors are urged to track Bitcoin’s performance and GDC’s financial updates closely.