Shares of GD Culture Group fell sharply on Tuesday after the company said it would buy all the assets of Pallas Capital Holding, including 7,500 Bitcoin worth $875.4 million.
The deal was completed last Wednesday, with GD Culture issuing nearly 39.2 million shares of its common stock in exchange for Pallas Capital’s assets, according to the press release.
The company’s CEO and chairman, Xiaojian Wang, said the deal will “directly support our plan to build a strong and diversified crypto asset reserve.” He added it would help the company take advantage of Bitcoin’s growing acceptance by big investors as a safe asset.
On Tuesday, GD Culture shares fell 28.16% to $6.99. This is the biggest single-day drop in over a year. The shares rose a little in after-hours trading, up 3.7%. In addition to that, the company’s total value on the market capitalization fell to $117.4 million.
Experts say the drop happened because of share dilution, which means issuing new shares reduces the ownership of existing shareholders. Some investors are worried about companies that raise money by selling shares to buy Bitcoin. VanEck, a research company, said on June 16 that companies using stock or debt to buy Bitcoin may face money problems if their stock value drops.
GD Culture first mentioned about its crypto plan in May 2025. It said it wanted to sell up to $300 million of stock to invest in Bitcoin and the Trump token. This was after the company got a warning from Nasdaq because its stockholder equity went below $2.5 million, the minimum required.
The new deal will make GD Culture one of the 14 largest publicly listed Bitcoin holders. This shows the company wants to hold more cryptocurrency as part of its business.
Moreover, more companies are buying Bitcoin too. In 2025, over 190 listed companies now hold Bitcoin, up from less than 100 earlier in the year. The total value of Bitcoin held by public companies is $112.8 billion, mostly controlled by Michael Saylor’s Strategy, which holds 68%.
Also Read: ARK Invest Buys $8.2M in Bullish Shares After IPO Drop
