GD Culture Stock Plunges After $875M Bitcoin Acquisition Deal

Shares of livestreaming and e-commerce company GD Culture Group (GDC) tumbled 28% on Tuesday after the firm announced plans to acquire all assets of Pallas Capital Holding, including a massive 7,500 Bitcoin stash.

Under the agreement, GD Culture will issue nearly 39.2 million new shares of common stock in exchange for Pallas Capital’s holdings, which include roughly $875.4 million worth of Bitcoin. The deal was finalized last Wednesday but revealed to investors on Tuesday.

CEO and chairman Xiaojian Wang said the purchase will help build a “strong and diversified crypto asset reserve” and take advantage of Bitcoin’s growing acceptance as both a reserve asset and a store of value. The company, known for its AI-generated influencers and livestream sales on TikTok, would become the 14th largest publicly listed Bitcoin holder if the transaction closes.

Investors React to Share Dilution

The market response was swift and negative. GDC shares slid to $6.99, their sharpest one-day drop in more than a year, before rebounding 3.7% in after-hours trading. The decline cut the company’s market capitalization to about $117.4 million, a steep fall from its all-time high of $235.80 per share reached in February 2021.

Issuing tens of millions of new shares dilutes existing shareholders, often pressuring a company’s stock price. Analysts have warned that financing crypto purchases through equity sales or debt can backfire. In June, VanEck’s head of digital assets research Matthew Sigel cautioned that if a company’s stock trades near its net asset value, “continued equity issuance can dilute rather than create value.”

The broader strategy of building corporate Bitcoin treasuries has exploded in 2025, with more than 190 publicly listed companies now holding the asset—up from fewer than 100 at the start of the year. 

Market leaders like Michael Saylor’s Strategy control a dominant 68% share of the $112.8 billion public Bitcoin treasury market. But momentum has cooled as investors question whether raising capital to buy Bitcoin remains sustainable.

GD Culture: Crypto Ambitions Amid Nasdaq Pressure

GD Culture first revealed its crypto ambitions in May, announcing plans to sell up to $300 million of stock to invest in Bitcoin and even President Donald Trump’s Official Trump token. That move followed a Nasdaq noncompliance warning that the company’s shareholder equity had dropped below the required $2.5 million.

While Tuesday’s deal positions GD Culture as a significant Bitcoin holder, it also highlights the risks of aggressive crypto expansion. Investors will be watching closely to see whether the company can turn its bold strategy into long-term value—or if shareholder dilution continues to weigh on the stock.