GD Culture Group completed a large-scale Bitcoin acquisition last week, issuing 39.2 million new shares to secure 7,500 BTC. The Bitcoin acquisition, valued at approximately $875.4 million, involved acquiring all assets of Pallas Capital Holding. Following the announcement, GD Culture’s stock plummeted 28.16% on Tuesday before recovering 3.7% in after-hours trading.
The Bitcoin acquisition immediately raised dilution concerns as the company’s market cap dropped to $117.4 million. GD Culture’s shares, once peaking at $235.80 in February 2021, now trade nearly 97% lower. Shareholders reacted swiftly to the dilution effects, leading to the steepest single-day fall in over a year.
The firm said the Bitcoin acquisition assets were free of liens, debts, or legal encumbrances. With this addition, GD Culture has become the 14th largest corporate Bitcoin holder globally. It now surpasses Galaxy Digital, which currently holds 6,894 BTC according to BitcoinTreasuries data.
GD Culture’s leadership emphasized that the Bitcoin acquisition is a cornerstone in its broader digital asset strategy. The company aims to build a crypto reserve for long-term stability, growth, and institutional alignment. The acquisition of Pallas Capital’s assets marks a significant shift toward blockchain-focused operations.
This move follows a May announcement stating GD Culture would sell up to $300 million in common stock for crypto investments. The firm also revealed plans to buy Bitcoin and the TRUMP token as part of its treasury strategy. These decisions reflect a growing trend among public companies to adopt crypto holdings as reserve assets.
Bitcoin acquisition strategies have surged in 2025, with over 190 public companies now holding the asset. These firms collectively manage more than 1 million BTC, valued in the hundreds of billions. GD Culture’s bold move aligns with this growing corporate momentum.
The share issuance raised serious concerns regarding capital structure and dilution risk. Analysts warned that issuing stock at or near net asset value can harm long-term holders if sentiment sours. Market reaction to the Bitcoin acquisition indicates doubts about its timing and structure.
VanEck’s research head previously cautioned that such capital strategies may become extractive rather than strategic. GD Culture’s share price collapse highlighted those risks, especially when valuations fall below the value of acquired assets. The company’s earlier Nasdaq compliance issues further added pressure.
Share dilution through Bitcoin acquisition continues to split opinions across financial circles. While some applaud the forward-thinking crypto approach, others point to historical volatility and execution risks. Still, GD Culture’s entry into the crypto treasury ranks remains one of the boldest steps by a mid-cap firm in 2025.
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