GD Culture Group Expands into Bitcoin, But Stock Market Punishes Move

GD Culture Group Limited (GDC), a Nevada-based holding company focused on AI-driven digital human technology and live-streaming e-commerce, has entered into a share exchange agreement to acquire Pallas Capital Holding’s assets.

Notably, the transaction will hand the firm ownership of 7,500 Bitcoins (BTC). This positions it as a major player in the digital asset treasury space. However, the firm’s stock fell 28% after the news, highlighting investor caution.

GD Culture Group on Its Way to Become 14th Largest Corporate Bitcoin Holder

In the latest press release, GD Culture Group noted that the acquisition was approved by a majority of its shareholders under Nasdaq Listing Rule 5635(d) and the Nevada Revised Statutes. As part of the deal made on September 10, the company will issue approximately 39.2 million shares of common stock in exchange for Pallas Capital’s assets.

This includes the 7,500 BTC free of encumbrances. At current market prices, the stack is valued at $879 million. Notably, these holdings could position GDC as the 14th largest corporate Bitcoin holder globally. 

According to data from Bitcoin Treasuries, the firm could surpass entities like Galaxy Digital Holdings Ltd, which has 6,894 BTC.

Xiaojian Wang, Chairman and Chief Executive Officer of GD Culture, emphasized that the move places GDC in a strong position to benefit from Bitcoin’s expanding importance as both a store of value and a preferred asset for institutional reserves.

“The acquisition of Pallas Capital marks a significant advancement in GDC’s digital asset treasury strategy. It directly supports our initiative to build a strong and diversified crypto asset reserve by acquiring scalable, high-value digital assets. When we integrate these assets, we are building the reserves necessary to execute on our digital asset strategy with both stability and growth potential,” Wang stated.

According to the executive, the deal is projected to enhance shareholder value. Furthermore, it will accelerate the company’s efforts to solidify its position in the digital asset market. Meanwhile, this acquisition comes after the company announced in May that it planned to sell $300 million in common stock. 

The proceeds were earmarked to support its crypto treasury strategy, including the purchase and long-term holding of Bitcoin and Official Trump (TRUMP) tokens.

GDC’s Bold Strategy Meets Market Resistance

Nonetheless, the firm’s latest move was met with investor skepticism. Google Finance data showed that GDC stock closed at $6.99, down 28%. In pre-market trading, stock prices saw a modest recovery of 3.72%.

GD Culture Group Limited (GDC) Stock Performance. Source: Google Finance

This response mirrors broader pressures on Bitcoin treasury companies in September 2025. BeInCrypto reported that yesterday, firms like Next Technology Holding (NXTT) and KindlyMD (NAKA) saw stock declines of 4.79% and over 55%, respectively. 

Furthermore, digital asset treasuries (DATs) have experienced collapsing market net asset values (mNAVs) for three consecutive months, underlining struggles to maintain purchasing power.

Despite this, Alexander Blume, Founder and CEO of Two Prime, noted that upcoming macroeconomic triggers could impact Bitcoin treasury companies. 

“The Fed’s decision this week will surely have an impact on risk assets, Bitcoin included. The outcome will largely depend on whether the intervention is too late to protect the labor markets. The labor market is slowing, but I wouldn’t call it a crisis yet. If that remains the base case, I suspect a 25bp cut over the next several quarters will be largely constructive for risk assets, including Bitcoin. By cutting, it creates room for other central banks to cut interest rates, aiming to keep their own currencies competitive with the dollar,” he said.

In a statement shared with BeInCrypto, Blume explained that a rate cut would be positive for corporate BTC vehicles. Why? Because it can lift BTC prices and attract new funding towards risk assets. 

Many of these firms rely on financing through PIPEs (Private Investments in Public Equity) and convertible debt, where investors expect to cycle in and out profitably. Thus, he added that, 

“The prospect of a continued bull market emboldens them to continue participating as well.”

Thus, GDC’s acquisition of Pallas Capital highlights the growing trend of companies doubling down on Bitcoin reserves, even as the stock shows signs of volatility. While investor skepticism remains evident in GDC’s stock performance,  macroeconomic conditions and Bitcoin’s long-term value might validate its treasury strategy.