Shares of DDC Enterprise, a digital food company based in Hong Kong, saw an increase of approximately 3.5% on Wednesday following the announcement of an additional $124 million in equity financing aimed at acquiring more Bitcoin.
DDC, traded on the NYSE just under $9 per share, has recorded a remarkable 105% rise since the beginning of the year, according to Yahoo Finance, with a significant portion of these gains attributed to its strategy of building a Bitcoin treasury valued at over $1.2 billion based on the current price of BTC.
The investment round was led by PAG Pegasus Fund and Mulana Investment Management, with contributions from OKG Financial Services Limited, as stated by the company.
“This financing round not only brings in essential capital but also offers considerable strategic advantages and momentum as we position DDC as a frontrunner in the institutional Bitcoin sector,” remarked DDC’s founder and CEO, Norma Chu.
“We’re excited to include PAG Pegasus Fund, OKG, and Mulana as our strategic partners and shareholders, recognized leaders in global finance and digital assets,” she added.
“Their backing is a solid endorsement of our vision and highlights the rising significance of public Bitcoin treasuries.”
DDC Enterprise, also known as DayDayCook, is a digital platform focusing on Asian cooking recipes and tutorials. It shifted its focus to accumulating BTC after experiencing a prolonged slump, with its stock price dipping below $2 earlier this year.
The company indicated that it has already acquired 1,058 BTC, approximated at $130 million based on recent BTC valuations.
According to CoinGecko, the leading cryptocurrency by market cap held steady over a 24-hour period after reaching a new peak of $126,080 on Monday.
DDC joins a growing list of companies that have embraced a cryptocurrency treasury approach, following the example set by software firm Strategy, previously known as MicroStrategy, which focuses on acquiring the cryptocurrency to provide investor exposure through its shares.
Firms listed on Nasdaq are diversifying their holdings, purchasing everything from Ethereum and XRP to Solana in order to enhance returns for their shareholders.
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Strategy has achieved monumental success, becoming the largest corporate holder of Bitcoin; investors are buying its stock for exposure to the digital asset. Its stock price has surged approximately 1,900% since it implemented this strategy in 2020, as per Yahoo Finance. While other firms adopting BTC treasuries have seen their share prices increase, some companies have struggled, prompting analysts to express concerns regarding this strategy.
