Finance

GD Culture’s Bitcoin Bet: Why the $875M Acquisition Tanked Shares, But Could Still Pay Off

GD Culture Group to acquire 7,500 Bitcoin for $875M, shares plunge 28% after the deal.

byAndres Castro

September 17, 2025, 9:42 AM

A close-up shows a hand holding a physical bitcoin, with a blurred background of charts and graphs representing financial market analysis.

As Bitcoin continues to hold, analysts examine its impact on the cryptocurrency and financial markets. By MDL.

Executive Summary

GD Culture Group’s shares plunged 28% following its announcement to acquire Pallas Capital Holding, which includes 7,500 Bitcoin valued at $875.4 million.

The deal involves GD Culture issuing nearly 39.2 million shares of its common stock to acquire Pallas Capital’s entire asset portfolio.

This strategic acquisition aims to establish a robust crypto asset reserve for GD Culture, aligning with Bitcoin’s growing institutional acceptance and positioning the company as the 14th largest publicly listed Bitcoin holder.

The Story So Far

GD Culture Group, an AI-powered livestreaming and e-commerce company, is strategically acquiring 7,500 Bitcoin to establish a robust crypto asset reserve, aiming to capitalize on Bitcoin’s increasing recognition as an institutional reserve asset and store of value, thereby aligning with a broader corporate trend of cryptocurrency accumulation.

Why This Matters

GD Culture Group’s acquisition of 7,500 Bitcoin marks a significant strategic pivot, aiming to establish a robust crypto asset reserve and capitalize on Bitcoin’s growing institutional acceptance, positioning the company as a major corporate holder. However, this move was met with considerable investor skepticism, leading to a 28% plunge in its shares, which suggests market concerns regarding the deal’s valuation, potential dilution, or the increased exposure to cryptocurrency volatility.

Who Thinks What?

GD Culture Group’s CEO and chairman, Xiaojian Wang, believes the acquisition will directly support the company’s objective to build a strong and diversified crypto asset reserve, benefiting from Bitcoin’s increasing recognition as a reserve asset and store of value among institutions.

The market reacted negatively to the acquisition announcement, causing GD Culture Group’s shares to plunge by 28.16%, reflecting investor apprehension or disapproval of the deal.

Shares in Nasdaq-listed livestreaming and e-commerce company GD Culture Group plunged 28% on Tuesday following its announcement of a share deal to acquire all assets from Pallas Capital Holding, which notably includes 7,500 Bitcoin. The acquisition, valued at $875.4 million for the Bitcoin alone, aims to establish a robust crypto asset reserve for GD Culture and capitalize on Bitcoin’s growing institutional acceptance.

The Acquisition Deal

The deal, finalized last Wednesday, will see GD Culture issue nearly 39.2 million shares of its common stock to secure Pallas Capital’s entire asset portfolio. This strategic move positions GD Culture to significantly expand its digital asset holdings.

Strategic Rationale and Company Context

Xiaojian Wang, CEO and chairman of GD Culture, stated that the acquisition would “directly support” the company’s objective to build a “strong and diversified crypto asset reserve.” He emphasized benefiting from Bitcoin’s increasing recognition as a reserve asset and store of value among institutions.

GD Culture Group currently operates a livestreaming and e-commerce business via TikTok, utilizing artificial intelligence to create virtual personalities. With this acquisition, the company is set to become the 14th largest publicly listed Bitcoin holder, aligning with a broader trend of corporations accumulating cryptocurrency.

Market Reaction

On Tuesday, GD Culture Group (GDC) shares fell by 28.16% to close at $6.99, according to Google Finance. This marked the company’s most significant daily decline in over 12 months, reducing its market capitalization to $117.4 million.

Despite the sharp drop, shares saw a slight recovery in after-hours trading, rising by 3.7%. The company’s stock now stands 97% below its all-time high of $235.80, which was reached on February 19, 2021.