NYSE American-listed company DDC Enterprise Ltd. announces plans to add 5,000 Bitcoin to its balance sheet over the next three years.
DDC Enterprise Ltd. (NYSEAM: DDC), a US-listed company with primary business operations in China, has just announced a strong investment plan in bitcoin as part of its new corporate reserve strategy. This announcement was made alongside a report of favorable business results, with 2024 revenue reaching $37.4 million, a 33% increase compared to the same period last year.
Notably, DDC aims to accumulate up to 5,000 bitcoin (BTC) by mid-2027, starting with an immediate purchase of 100 BTC and expected to hold 500 BTC in the next six months. This strategy reflects the leadership's view on the long-term potential of bitcoin as a value storage in the context of macroeconomic instability.
"The unique properties of bitcoin as a value storage and a hedge against macroeconomic instability are entirely in line with our vision of reserve diversification and enhancing shareholder returns," emphasized Norma Chu, CEO and Chairman of the Board of DDC, in a shareholder letter.
Bitcoin strategy alongside positive business results
According to financial reports, DDC achieved encouraging results in 2024. Beyond the 33% revenue increase, the company's gross profit margin also improved, reaching 28.4% compared to 25% in 2023. The adjusted EBITDA loss narrowed to $3.5 million, while shareholders' equity increased by 33% to $11.3 million, supported by debt conversion activities and share issuance.
As of March 31, 2025, DDC holds $23.6 million in cash and short-term investments, creating a solid foundation for its bitcoin investment strategy. Although the company has not yet announced a specific allocation ratio for bitcoin purchases, CEO Norma Chu confirms this is part of a long-term strategy aimed at optimizing shareholder value.
In addition to the bitcoin strategy, DDC also announced another important initiative for 2025: a joint venture in China expected to generate $3 million in annual net profit. These two initiatives reflect the leadership's vision of diversifying revenue sources and optimizing operational efficiency.
To implement the bitcoin strategy, DDC will establish a dedicated treasury team and hire cryptocurrency advisors. Chu emphasized her confidence in the breakthrough role of blockchain technology and positioning DDC as a pioneering enterprise in digital asset adoption.
Looking to the future, DDC expects to achieve a positive adjusted EBITDA in 2025 through operational optimization measures and strategic investments. The leadership expressed gratitude to shareholders for their support as the company moves towards its goal of "shaping the future" of corporate finance through bitcoin integration into its reserve strategy.
