TLDR
- DDC Enterprise bought 21 Bitcoin for $2.28 million, starting a three-year plan to acquire 5,000 BTC
- The Hong Kong food company plans to buy 500 BTC by end of 2025 and complete 5,000 BTC purchase within three years
- Company shares fell 14.5% on announcement day despite typical positive market reaction to Bitcoin treasury adoption
- DDC will purchase another 79 Bitcoin in coming days to reach initial target of 100 BTC
- The planned 5,000 BTC holdings would place DDC just outside top 10 public companies with largest Bitcoin reserves
DDC Enterprise, a Hong Kong-based food company listed on the New York Stock Exchange, has made its first Bitcoin purchase as part of an aggressive three-year cryptocurrency accumulation strategy. The company bought 21 Bitcoin for $2.28 million on May 23, exchanging 254,333 class A ordinary shares for the digital assets.
The initial purchase marks the beginning of DDC’s plan to acquire 5,000 Bitcoin over the next three years. Company founder and CEO Norma Chu announced the strategy in a shareholder letter on May 15, outlining specific targets for Bitcoin accumulation.
DDC Enterprise, also known as DayDayCook, specializes in heat-and-eat meal products across Asian markets. The company now joins a growing list of public corporations adopting Bitcoin as a treasury asset to diversify their cash holdings.
The food company plans to purchase an additional 79 Bitcoin in the coming days, bringing its total holdings to 100 BTC. This represents the first phase of a larger acquisition timeline that targets 500 Bitcoin by the end of 2025.
According to data from Bitbo, DDC’s planned 5,000 Bitcoin stack would position the company just outside the top 10 public companies with the largest Bitcoin holdings. The target would place DDC behind Japanese investment firm Metaplanet, which currently holds 7,800 Bitcoin.
Market Response Defies Typical Pattern
Despite the growing trend of companies seeing stock price increases after announcing Bitcoin treasury strategies, DDC Enterprise experienced the opposite reaction. The company’s shares closed down 14.5% on May 23, though they recovered slightly by 2.43% in after-hours trading to $3.79.
DDC’s stock performance contrasts sharply with other companies that have announced similar Bitcoin strategies. DigiAsia saw its share price surge more than 90% in a single trading session after announcing a $100 million Bitcoin treasury plan earlier this month.
The stock decline occurred while broader markets also fell, with the S&P 500 dropping 0.6% and the Nasdaq falling 1%. DDC Enterprise shares are down over 27% year-to-date, reflecting broader challenges facing the company beyond its cryptocurrency strategy.
Growing Asian Crypto Adoption
DDC’s Bitcoin purchase reflects increasing cryptocurrency adoption across Asia despite regulatory restrictions in some markets. Chinese electric vehicle retailer Jiuzi Holdings approved a plan on May 22 to purchase 1,000 Bitcoin over the next year through share issuance and direct purchases.
Recent reports indicate high-net-worth investors across Asia are shifting away from US dollar-based investments toward gold, cryptocurrencies, and Chinese-based assets. This trend suggests growing institutional acceptance of digital assets in the region.
Hong Kong’s Legislative Council passed the Stablecoin Bill last week, establishing a regulatory framework for stablecoin issuers. Institutions will likely be able to apply for stablecoin issuance licenses by year-end, further supporting regional cryptocurrency infrastructure development.
China maintains a total ban on cryptocurrency transactions, yet appetite for digital assets continues growing among Chinese companies and investors. This creates a complex environment where businesses seek cryptocurrency exposure through offshore entities and international markets.
DDC Enterprise plans to execute its remaining Bitcoin purchases through a combination of share exchanges and direct market purchases. The company has not specified exact timing for reaching its 5,000 Bitcoin target beyond the three-year timeline.
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