GD Culture Group (GDC) said it will issue about 39.2 million new shares to acquire Pallas Capital Holding’s assets, including 7,500 BTC valued at $875.4 million.
The company disclosed the stock-for-assets Bitcoin acquisition on Tuesday and said the agreement was signed Sept. 10, 2025. Bitcoin traded near $116,646 on the day.
GD Culture Bitcoin acquisition: 7,500 BTC and 39.2 million new shares
GD Culture agreed to swap 39.2 million common shares for Pallas Capital’s assets. The package includes 7,500 BTC plus other holdings that transfer at closing.
The company structured the Bitcoin acquisition as an asset purchase rather than a cash deal.
Chief executive Xiaojian Wang said the purchase would “directly support” a plan to build a “strong and diversified crypto asset reserve.”
He added that the company aims to benefit from Bitcoin’s “growing institutional acceptance as a reserve asset and store of value.” The statement appeared in Tuesday’s announcement.
GD Culture operates an AI-enabled livestreaming and e-commerce business that uses synthetic presenters on short-video platforms like TikTok.
After the Pallas Capital transaction, the balance sheet would include 7,500 BTC.
Based on public trackers, that size would place GD Culture among the larger Bitcoin treasury holders once the deal closes.
GDC stock reaction: share dilution and market cap hit
GDC stock fell 28.16% to $6.99 on Tuesday. In after-hours trading, shares rose about 3.7%. The session marked the steepest one-day decline in more than a year.
The drop pushed market capitalization to roughly $117.4 million. GDC stock now trades about 97% below the all-time high of $235.80 set on Feb. 19, 2021.
The move followed disclosure of the 39.2 million shares tied to the Bitcoin acquisition.
Share-for-asset transactions expand the share count and reduce existing ownership percentages. Markets often treat that change as share dilution.
Tuesday’s trading reflected that lens as investors weighed the Pallas Capital asset deal and the new Bitcoin treasury position.
Bitcoin treasury trend: VanEck warning on ATM equity sales
More public companies hold Bitcoin in 2025 than at the start of the year. Industry counts show 190+ listed firms with positions, up from fewer than 100.
Rankings credit Strategy, led by Michael Saylor, with about 68% of total corporate holdings. Public trackers compile those tallies.
However, financing methods have drawn scrutiny. On June 16, Matthew Sigel, head of digital assets research at VanEck, warned that equity-funded Bitcoin treasury purchases can erode value.
“As some of these companies raise capital through large at-the-market (ATM) programs to buy BTC, a risk is emerging: If the stock trades at or near NAV, continued equity issuance can dilute rather than create value,” he said.
That VanEck warning targets companies that issue stock or debt to buy Bitcoin. If share prices weaken, proceeds from ATM programs may not offset share dilution.
The GD Culture plan to acquire 7,500 BTC via 39.2 million shares places those mechanics under attention.
May plan: $300M stock sale, Trump token, Nasdaq noncompliance
In May, GD Culture outlined a crypto treasury plan and filed to sell up to $300 million of common stock.
The company said it could use proceeds to buy Bitcoin and President Donald Trump’s Official Trump (TRUMP) token. That disclosure set expectations for future digital-asset allocations.
The offering followed a Nasdaq noncompliance notice that cited stockholder equity below the $2.5 million minimum.
GD Culture said it intended to address listing standards while executing its Bitcoin treasury strategy. Subsequent updates referenced the equity program and potential asset purchases.
With the Pallas Capital agreement signed Sept. 10, 2025, GD Culture moved from plan to execution.
The deal specifies 7,500 BTC, a defined share issuance, and a timeline tied to last week’s signing.
If completed as announced, the Bitcoin acquisition would add a large wallet to the GDC balance sheet and increase the outstanding share count by 39.2 million shares.
Editor at Kriptoworld
Tatevik Avetisyan is an editor at Kriptoworld who covers emerging crypto trends, blockchain innovation, and altcoin developments. She is passionate about breaking down complex stories for a global audience and making digital finance more accessible.
📅 Published: August 4, 2025 • 🔄 Last updated: August 4, 2025
