- Intense negative tone.
A leading food company has made a bold move into the world of cryptocurrency, acquiring 21 bitcoin despite its share price plummeting.
DDC Enterprise has taken a significant step towards incorporating bitcoin into its corporate treasury by acquiring 21 BTC as part of a long-term plan to accumulate the cryptocurrency. ‘We’re excited about this opportunity and believe it will provide a new asset class for our company,’ said a spokesperson.
DDC Enterprise is a global logistics and supply chain management company.
Founded in 1977, it provides transportation services for various industries, including retail, manufacturing, and e-commerce.
With operations in over 30 countries, DDC Enterprise offers customized solutions for clients' shipping needs.
The company's services include air freight, ocean freight, truckload, and less-than-truckload transport.
DDC Enterprise also provides warehousing and distribution services to ensure timely delivery of goods.
Growing Trend of Companies Adopting Bitcoin as Treasury Asset
The company’s move positions DDC among a growing cohort of public companies using bitcoin as a treasury asset. Two more purchases totaling 79 BTC are expected in the coming days, bringing the company’s initial holdings to 100 BTC. In fact, ‘companies adopting bitcoin as a strategic treasury asset often see major price rises,’ according to industry experts.
Bitcoin is a decentralized digital currency that allows for peer-to-peer transactions without the need for intermediaries. It was created in 2009 by an individual or group using the pseudonym Satoshi Nakamoto. Bitcoin uses cryptography to secure and verify transactions, with a network of computers around the world working together to validate and record them on a public ledger called the blockchain.
Key Acquisition Details
The acquisition of 21 BTC was made possible through the exchange of 254,333 class A ordinary shares for BTC, valued at roughly $2.28 million. This transaction is part of DDC‘s ambitious plan to accumulate up to 500 BTC within six months and aim for 5,000 BTC in three years.
Market Reaction to the Announcement
However, despite the growing trend of companies adopting bitcoin as a treasury asset, DDC Enterprise saw its shares plunge more than 12% on Friday’s trading session. The company’s decision to incorporate bitcoin into its corporate treasury seems to have had the opposite effect, with share prices dropping significantly.
Comparison to Other Companies
To put this into perspective, another Asian food company, DigiAsia (FAAS), saw its share prices surge more than 90% in a single trading session after announcing a $100 million BTC treasury plan earlier this month. This stark contrast highlights the risks and uncertainties associated with investing in bitcoin as a treasury asset.
Conclusion
The acquisition of 21 bitcoin by DDC Enterprise is an interesting development in the growing trend of companies adopting bitcoin as a treasury asset. While the company’s ambitious plans to accumulate large amounts of bitcoin may yield long-term benefits, the market reaction to the announcement suggests that there are risks involved.
