New data from Satoshi Club revealed that a Hong Kong firm, DDC Enterprise Limited (DayDayCook), has made its first Bitcoin purchase, buying 21 BTC for $2.28 million in stock.
This is an unexpected move as it is the first time the multi-brand Asian consumer food company is engaging in such an investment. Such a strategic step highlights the company’s bullish outlook on Bitcoin (BTC)’s potential.
Why is DDC embracing Bitcoin?
DDC Enterprise completed its first BTC purchase as a part of its corporate strategy to incorporate Bitcoin into its treasury holdings. The Asian-based consumer food company issued stocks worth $2.28 million in exchange for 21 BTC, valued at the current market price.
DDC anticipates completing two more purchases in the next few days to buy the remaining 79 BTC under this initial stage. Following this acquisition, the firm will hold 100 Bitcoin as part of a growing BTC treasury.
This announcement comes after the CEO of DDC, Norman Chu, issued a shareholder letter last week, which highlighted the firm’s operational and financial growth achieved last year. The letter also highlighted a bold Bitcoin acquisition strategy, planning to accumulate up to 500 BTC in six months’ time and additional 5,000 BTC within the next three years. This acquisition plan positions DDC as an innovative firm among NYSE-listed companies in embracing such a revolutionary Bitcoin treasury strategy.
And what does this mean?
DDC’s ground-breaking move is another evidence that an increasing number of companies continue to adopt Bitcoin treasuries as part of their corporate financial reserves.
Earlier today, Swedish healthcare firm, H100 Group, also announced its entry into the crypto landscape. The health tech company has raised $2.2 million in a funding round led by Blockstream CEO Adam Back.
H100 said the raise would enable it to purchase about 20.18 BTC at current market prices, which would top up to the 4.39 BTC it already bought on May 22, bring the total amount to around 24.57 BTC.
The fact that companies are buying Bitcoin highlights an evolving landscape of finance. It is an indicator that companies of all types recognize the significance of cryptocurrencies and want to exploit their potential for financial growth.
