Nasdaq-listed GD Culture plunges on $875M Bitcoin acquisition deal
Shares in GD Culture fell 28% after the livestreaming company made a deal to swap tens of millions of its shares to acquire 7,500 Bitcoin from Pallas Capital.
Shares in the livestreaming and e-commerce company GD Culture Group fell 28% on Tuesday after announcing a share deal to acquire all the assets from Pallas Capital Holding, including 7,500 Bitcoin.
GD Culture will issue nearly 39.2 million shares of its common stock in exchange for all Pallas Capital’s assets, including $875.4 million worth of Bitcoin (BTC), the firm said on Tuesday. The deal was made last Wednesday.
GD Culture’s CEO and chairman, Xiaojian Wang, said the deal would “directly support” its plan to build a “strong and diversified crypto asset reserve” while benefiting from Bitcoin’s growing institutional acceptance as a reserve asset and store of value.