Asia -based DDC Enterprise, Bitcoin for corporate treasury $107,078.29 He bought the first step of the adding plan by purchasing 21 BTC. The company invested approximately $ 2.28 million with the transaction it carried out for 254,333 class A share. However, this move leads to a 12 %decrease in stock prices, while CEO Norma Chu’s 500 BTC in six months and 5,000 BTC targets in three years drew attention.
DDC’s Bitcoin strategy and market reaction
DDC Enterprise aims to complete its plan to integrate Bitcoin into the corporate treasury in three stages. The company, which received 21 BTC in the first place, plans to reach 100 BTC in total by purchasing 79 more BTC in the coming days. The long -term targets emphasized in Norma Chu’s letter to shareholders show that the company has an aggressive entry into the crypto money market.
However, the market reaction was negative, contrary to expectations. After the purchase of Bitcoin was announced, DDC shares lost 12 %, while the S&P 500 and NASDAQ decreased by 0.6 %and 1 %respectively. This indicates that investors are cautious about the company’s crypto currency move. Experts say that the decline in stock prices may be a short -term reaction, and if the plans have succeeded in the long term, they expect recovery.
Comparison of DDC’s strategy with similar companies
Unlike DDC, some companies following similar strategies have achieved significant increases in stock values. For example, when Digiasia announced the Bitcoin plan of $ 100 million, his shares rose by more than 90 %in a single day. This difference reveals that the market can respond to the same types of moves.
The biggest challenge in front of the DDC seems to be to regain its investor confidence. The company aims to reduce uncertainty in the market by accelerating crypto currency purchases in the coming months. However, Bitcoin’s volatile structure brings the risk of fluctuation in stock values. Norma Chu argues that targets are part of the company’s financial diversification strategy, and in the long run, crypto currency assets will increase institutional resistance.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
