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NEW YORK - DDC Enterprise Limited (NYSE: DDC), a consumer food brand portfolio known for its Asian cooking content platform, has announced its foray into cryptocurrency by commencing a Bitcoin Accumulation Strategy. With a market capitalization of $12.1 million and revenue growth of 33% in the last twelve months, the company disclosed this strategic move as part of its efforts to innovate and adapt to the changing economic landscape. According to InvestingPro analysis, DDC has demonstrated strong revenue growth despite challenging market conditions, with 12 key insights available for subscribers looking to deeper understand the company’s fundamentals.
DDC’s initial acquisition of 21 bitcoins last Friday marks the beginning of its plan to diversify its corporate treasury. The company has set targets to increase its Bitcoin holdings to 500 BTC within six months and aims for 5,000 BTC within 36 months. With a current ratio of 1.02 and more cash than debt on its balance sheet, this decision comes amidst global economic volatility, including high inflation rates and increasing global debt, prompting DDC to seek alternative reserve assets.
The company’s manifesto explains that Bitcoin’s scarcity, consistent performance, and resilience through market cycles make it an attractive strategic reserve asset. With an overall financial health score rated as "FAIR" by InvestingPro, DDC believes that Bitcoin can offer protection against fiat currency dilution and macroeconomic shocks. The company’s next earnings report is scheduled for May 28, 2025, which will provide more clarity on this strategic initiative’s impact.
While DDC’s core business remains in the food industry, the company’s leadership views the adoption of Bitcoin as an evolution to future-proof the business. The move is inspired by other companies, such as MicroStrategy and Metaplanet, which have integrated cryptocurrency into their treasury management.
DDC’s founder, who comes from a non-crypto background, expressed a commitment to educating and guiding other business leaders, particularly in traditional industries, on the potential role of Bitcoin in corporate finance. Additionally, the company aims to engage and empower more women in the Bitcoin community, acknowledging the current gender gap in cryptocurrency ownership.
The company has formed a dedicated treasury team and expanded its crypto-native advisory board to ensure proper risk management and transparency in its Bitcoin strategy. DDC’s journey into cryptocurrency is set to be shared with stakeholders, as the company pledges to operate with transparency and authenticity.
This strategic shift is based on a press release statement from DDC Enterprise Limited, and it reflects the company’s ambition to create long-term value and adapt to the rapidly evolving economic and technological environment.
In other recent news, DDC Enterprise Ltd. reported a robust financial performance for 2024, with revenue growing by 33% year-over-year to USD 37.4 million. This growth was driven by strategic acquisitions in the U.S. and strong operations in China. The company’s gross profit margin improved to 28.4%, reflecting effective supply chain management. DDC also narrowed its adjusted EBITDA loss to USD 3.5 million and increased shareholders’ equity by 33% to USD 11.3 million. In a strategic move, the company announced a Bitcoin Accumulation Strategy, planning to purchase 100 BTC immediately and aiming for 5,000 BTC within 36 months.
Additionally, DDC Enterprise announced a 1:25 reverse stock split, set to take effect on April 21, 2025, to adjust its share price favorably. The company’s CEO, Norma Chu, emphasized the resilience and future prospects of DDC, highlighting a focus on Southeast Asia expansion and a new joint venture in China expected to contribute a net profit of USD 15 million over five years. The reverse stock split will reduce outstanding shares from approximately 79 million to about 3.2 million. DDC has also returned to full compliance with SEC and NYSE regulations, with Chu personally investing in 10 million additional shares. These developments underscore DDC’s strategic and financial positioning as it navigates the current market landscape.
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