DDC Enterprise Ltd. (DDC) shares jumped more than 10% in after-hours trading Tuesday, climbing to $3.29 as investors digested news of the company's ambitious Bitcoin accumulation strategy.
Record-Breaking Bitcoin Buy
Last week, DDC agreed to acquire 300 Bitcoin (BTC), marking the company's largest single cryptocurrency purchase in its history. This substantial addition pushes DDC's total Bitcoin holdings to 1,383 BTC, representing nearly a 30% increase from its previous balance.
For context, that's serious skin in the game for a company with a market cap under $70 million.
The Numbers Behind the Strategy
The acquisition brings DDC's holdings to 0.059333 bitcoin per 1,000 shares, a 28% increase from where things stood before this purchase. According to the company, its expected bitcoin yield for the second half of 2025 stands at an eye-popping 99%.
According to an October filing, DDC held 1,083 bitcoin at an average purchase price of $108,726. That means the company has been buying aggressively into what many would consider expensive territory.
Management's Long Game
Norma Chu, founder, chairwoman and CEO of DDC Enterprise, framed the move as part of a methodical approach. "Since launching our treasury program, we have remained focused on disciplined, consistent accumulation guided by a long-term perspective," she said.
Chu added that the company evaluates opportunities carefully and acts with precision when conditions are right. The New York-based holding company adopted Bitcoin as its primary treasury reserve asset on May 15, joining a growing list of companies betting big on crypto as a treasury strategy.
Stock Reality Check
While the after-hours pop looks encouraging, it's worth noting that DDC Enterprise shares have fallen 41.49% year to date. The stock trades in a 52-week range of $1.62 to $20.83, with a market capitalization of $69.74 million.
Price Action: DDC Enterprise closed Tuesday's regular session at $2.99, up 5.28%, before the after-hours surge.