DDC Enterprise (DDC), an Asian food company, led by founder and CEO Norma Chu, made a bold move by acquiring 21 BTC as part of its long-term plan to incorporate cryptocurrency into its corporate treasury. The company exchanged 254,333 class A ordinary shares for BTC, totaling around $2.28 million in value, according to a recent press release. This strategic decision places DDC among a growing number of public companies embracing BTC as a treasury asset, with plans for two more purchases totaling 79 BTC in the near future, ultimately aiming for a total of 100 BTC in its holdings.
Chu outlined the company’s ambitious goal of accumulating up to 500 BTC within the next six months and setting their sights on reaching 5,000 BTC within three years in a shareholder letter released last week. Despite the potential for significant price increases typically associated with companies incorporating bitcoin into their treasury plans, DDC experienced an unexpected outcome. On Friday’s trading session, the company’s shares plummeted by more than 12%, a stark contrast to the 0.6% drop in the S&P 500 and the 1% fall in the tech-heavy Nasdaq. In comparison, DigiAsia (FAAS) witnessed a remarkable surge of over 90% in its share prices following the announcement of a $100 million BTC treasury plan earlier in the month.
Not really sure why this matters, but it seems like DDC’s decision to jump on the BTC treasury trend didn’t have the immediate positive impact on its shares as expected. Maybe it’s just me, but it’s interesting to see how different companies’ stock prices can react differently to similar strategic moves involving cryptocurrency. Only time will tell if DDC’s gamble on bitcoin will pay off in the long run.
