GD Culture Shares Fall After Share Swap to Acquire 7,500 Bitcoin, Could Heighten Dilution Concerns

• Share-swap purchase of 7,500 BTC valued at $875.4M

• GDC shares plunged 28%, cutting market cap to $117.4M amid dilution concerns

• Over 190 publicly listed companies now hold Bitcoin; market sector valued at $112.8B (BitcoinTreasuries.NET)

GD Culture Bitcoin acquisition: GDC issues 39.2M shares to buy 7,500 BTC; read the impact on stock, dilution risks, and what investors should watch next. Learn more now.

What is GD Culture’s Bitcoin acquisition and why did shares fall?

GD Culture Bitcoin acquisition is a share-for-assets deal in which GD Culture will issue nearly 39.2 million common shares to acquire all assets of Pallas Capital Holding, including 7,500 Bitcoin valued at about $875.4 million. The announcement prompted an immediate market sell-off driven by dilution concerns and investor caution.

GD Culture’s CEO and chairman, Xiaojian Wang, said the transaction will “directly support” the company’s plan to build a crypto asset reserve and benefit from Bitcoin’s growing institutional acceptance as a reserve asset and store of value.

Source: BitcoinTreasuries.NET

How did the market react to the share issuance?

Shares in GD Culture Group fell 28.16% on Tuesday to $6.99, according to Google Finance data reported publicly. The drop cut the company’s market capitalization to about $117.4 million, marking its largest single-day decline in over a year.

Dilution from issuing nearly 39.2 million new shares reduced existing shareholders’ ownership percentages. Market participants often view large equity financings for crypto purchases as risky if the stock price weakens, a point highlighted by research and commentary from institutional asset managers such as VanEck.

When did GD Culture announce its crypto strategy and what else is included?

GD Culture announced its broader crypto treasury strategy in May, initially flagging plans to sell up to $300 million of common stock to invest in crypto assets including Bitcoin and the Official Trump (TRUMP) token. The company had also received a Nasdaq noncompliance warning for stockholder equity falling below required thresholds prior to the offering.

How big is the Bitcoin treasury company trend?

So-called Bitcoin treasury companies have surged in 2025: more than 190 publicly listed firms now hold Bitcoin, up from fewer than 100 at the year’s start. The sector’s total market for listed Bitcoin holdings has grown to approximately $112.8 billion, with Michael Saylor’s Strategy (MicroStrategy) controlling a dominant 68% share, per BitcoinTreasuries.NET data.

Frequently Asked Questions

What do experts and data say?

Analysts and asset managers have warned that financing Bitcoin purchases via equity or debt can erode shareholder value if the share price declines. Matthew Sigel, head of digital assets research at VanEck, noted that repeated equity issuance near NAV can dilute rather than create value.

Key Takeaways

• Deal structure: GD Culture will swap ~39.2M shares to acquire Pallas Capital’s assets, including 7,500 BTC.
• Market impact: GDC shares plunged 28% on announcement, lowering market cap to about $117.4M.
• Sector context: Bitcoin treasury companies have expanded to 190+ public firms, with total listed BTC holdings near $112.8B (BitcoinTreasuries.NET).

Change in GDC shares on Tuesday, including after-hours. Source: Google Finance

What should investors watch next?

Investors should monitor post-deal integration, any additional equity or ATM programs, Bitcoin price movements relative to the company’s purchase price, and updates on Nasdaq compliance status. Transparency on custody, insurance, and reserve accounting will be key E-E-A-T signals for credibility.

Conclusion

The GD Culture Bitcoin acquisition repositions the company as a significant public Bitcoin holder but immediately raised dilution and valuation concerns, triggering a sharp stock decline. Watch for disclosures on treasury management and capital plans as the company executes its crypto reserve strategy. COINOTAG will monitor updates and provide follow-up reporting.

Shares in GD Culture dropped 28% after it agreed to swap nearly 39.2 million shares to acquire Pallas Capital’s assets, including 7,500 Bitcoin.