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2d ago

GD Culture to Acquire 7,500 Bitcoin in Share Swap With Pallas as Stock Slides 28%

Investors balk at heavy share issuance tied to a crypto-reserve pivot.

Gd culture to acquire pallas capital assets, adding 7,500 bitcoin to treasury
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Overview

  • GD Culture entered a definitive share-exchange agreement to issue 39,189,344 new shares to acquire Pallas Capital and its assets, including 7,500 BTC, pending closing.
  • The company values the Bitcoin at about $876.8 million based on a ~$116,900 price per BTC, implying roughly $22.37 in BTC for each share issued in the deal.
  • GDC says the Bitcoin to be acquired is free of any encumbrances and is intended to be held as a long-term digital asset reserve.
  • The stock fell 28.16% to $6.99 following the disclosure, marking its steepest one-day drop in a year, then recovered slightly in after-hours trading.
  • The hoard would place GDC around 14th among publicly traded corporate Bitcoin holders, as analysts warn of dilution risks from equity-funded crypto purchases.