Market News

Hong Kong Food Firm Cultivates Bitcoin Treasury with $528 Million Capital Raise

Hong Kong-based DDC Enterprise Limited has successfully raised $528 million to expand its Bitcoin treasury.

The company announced its funding efforts were part of a broader strategy influenced by software firm Strategy’s crypto-stacking playbook.

DDC plans to purchase 5,000 Bitcoin over the next three years, having already acquired 138 BTC valued at approximately $14.6 million as of June 12.

The capital raised includes $26 million from private equity financing and $25 million from convertible notes, with projections for additional future releases.

CEO Norma Chu emphasized the significance of this capital commitment, aiming to establish a substantial corporate Bitcoin treasury.

The firm, while aggressively investing in Bitcoin, continues to operate its core business offering convenient food options inspired by Asian cuisine.

Share prices of DDC slid nearly 3% to $10.59 in recent trading sessions as the market digests this large capital move.

This initiative reflects a growing trend among public companies adopting similar Bitcoin treasury strategies, following in the footsteps of major players like Michael Saylor's firm.

Currently, over 140 public companies hold a combined $90.9 billion worth of Bitcoin, a figure bolstered by recent price surges surpassing $100,000.

DDC Enterprise’s endeavor marks a notable development in the intersection of food and finance sectors, showcasing the increasing inclination to integrate cryptocurrencies into corporate strategies.