Nasdaq-listed GD Culture Group Limited (ticker GDC) will add 7,500 bitcoins to its "long-term digital asset reserve" once its acquisition of Pallas Capital is finalized, the firm disclosed on Wednesday.
Those bitcoins are worth around $876 million at current prices, according to The Block’s price page. Bitcoin is currently trading slightly above $115,000.
On Tuesday, GDC entered into a definitive share exchange agreement to acquire 100% of Pallas Capital’s circulating shares in exchange for over 39 million newly issued shares of GDC common stock. Pallas is a British Virgin Islands-registered company.
"By completing this acquisition, we have significantly strengthened our balance sheet and established us among the top 15 publicly traded companies with the largest Bitcoin treasury reserves," GDC CEO Xiaojian Wang said in a statement. "Looking ahead, we will continue to evaluate opportunities to further leverage blockchain and decentralized finance (DeFi) solutions to further enhance shareholder value."
According to BitcoinTreasuries, the absorption of Pallas's 7,500 BTC alone would place GDC between the current 13th- and 14th-largest publicly-traded bitcoin holders, Block and Galaxy, respectively, with an estimated 8,692 BTC and 6,894 BTC on their balance sheets. It is unclear how much bitcoin, if any, GDC held before the Pallas acquisition.
This is not the firm’s first foray into crypto markets. In May, GDC signed a stock purchase agreement with a British Virgin Islands-based investor to raise around $300 million to fund bitcoin and TRUMP memecoin purchases.
GD Culture started as a digital human technology and e-commerce company before launching the digital asset treasury.
