DDC Enterprise partners with BitGo for Bitcoin custody services

NEW YORK - DDC Enterprise Limited (NYSE: DDC), which has seen its stock surge over 170% in the past six months, announced Wednesday it has selected BitGo Trust Company as the custodian for its Bitcoin holdings, strengthening the security framework for its corporate treasury strategy. According to InvestingPro data, the company maintains a strong cash position, with more cash than debt on its balance sheet.

BitGo will provide enterprise-grade security and regulatory compliance for DDC’s Bitcoin assets through its qualified custody platform, which includes multi-signature technology and insurance coverage of up to $250 million. For investors seeking deeper insights into DDC’s financial health and 13 additional exclusive ProTips, InvestingPro offers comprehensive analysis and real-time metrics.

"Selecting BitGo as our custodian is a critical pillar in our Bitcoin treasury strategy," said Norma Chu, co-founder, chairwoman, and CEO of DDC. "Security and institutional governance are non-negotiable as we scale our holdings."

Mike Belshe, CEO of BitGo, stated that his company is "proud to serve as the trusted custodian for DDC in this next phase of Bitcoin treasury expansion."

The partnership aims to provide DDC with institutional-grade security for safeguarding its growing Bitcoin reserves through BitGo’s qualified, insured custody platform.

DDC Enterprise Limited operates as both an Asian food platform with brands including DayDayCook, Nona Lim, and Yai’s Thai, while simultaneously pursuing a Bitcoin accumulation strategy as part of its corporate treasury approach. The company reported revenue growth of 33% in the last twelve months, though InvestingPro analysis indicates rapid cash burn and current unprofitability, with an EBITDA of -$8.88 million.

BitGo, founded in 2013, provides digital asset infrastructure services including custody, wallets, staking, trading, financing, and settlement from regulated cold storage facilities.

This information is based on a press release statement from DDC Enterprise Limited.

In other recent news, DDC Enterprise Ltd. reported a notable 33% year-over-year revenue growth for 2024, reaching USD 37.4 million, along with an improved gross profit margin of 28.4%. The company also narrowed its adjusted EBITDA loss to USD 3.5 million and strengthened its balance sheet with a 33% increase in shareholders’ equity. In a strategic move, DDC has launched a Bitcoin Accumulation Strategy, initially acquiring 100 BTC and aiming to expand its holdings to 500 BTC within six months and 5,000 BTC within 36 months. This initiative is overseen by a dedicated treasury team and supported by a partnership with Hex Trust, providing institutional-grade custody and trading services. Additionally, DDC announced a 1:25 reverse stock split to adjust its share price, following a trading halt due to market volatility. The company has also disclosed plans for a new joint venture in China, expected to contribute USD 3 million in annual net profit over the next five years. These developments reflect DDC’s efforts to diversify its reserves and enhance shareholder returns amidst ongoing economic changes.

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