GD Culture plunges on $875M Bitcoin acquisition deal

Shares of Nasdaq‑listed GD Culture fell 28% on Tuesday after the livestreaming and e‑commerce firm agreed to issue about 39.2 million new shares to acquire all assets of Pallas Capital, including 7,500 Bitcoin valued at roughly $875.4 million. The company said the deal was struck last Wednesday.

“This deal will directly support our plan to build a strong and diversified crypto asset reserve,” said Xiaojian Wang, GDC’s CEO and chairman. He added that the strategy aims to benefit from Bitcoin’s growing institutional acceptance as a reserve asset and store of value.

The company, which uses artificial intelligence to create “fake people” and runs a livestreaming and e‑commerce business via TikTok, says the acquisition would position it as the 14th‑largest publicly listed Bitcoin holder.

GDC closed at $6.99 (‑28.16%), then rose 3.7% after hours, trimming the slide. The drop – the steepest in over a year – pulled the firm’s market cap to about $117.4 million; the shares remain roughly 97% below the $235.80 all‑time high set on Feb. 19, 2021.

Industry trackers estimate that more than 190 listed firms now hold the asset, up from fewer than 100 at the start of 2025, with an estimated $112.8 billion in combined holdings. Momentum has cooled as investors question whether raising capital to buy BTC adds value, given the dilution risk to existing holders. In June, VanEck cautioned that companies funding BTC via stock or debt risk capital erosion if share prices fall.

GDC set out its crypto‑treasury plan in May, saying it could sell up to $300 million of common stock to invest in digital assets including Bitcoin and President Donald Trump’s TRUMP token. The filing followed a Nasdaq notice that its stockholder equity had fallen below the $2.5 million minimum requirement.