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NEW YORK - DDC Enterprise Limited (NYSE:DDC), whose stock has surged over 314% in the past six months, announced Thursday a partnership with QCP Group to develop yield enhancement strategies for its Bitcoin holdings. According to InvestingPro data, the company maintains a strong balance sheet with more cash than debt, positioning it well for this strategic initiative.
The collaboration aims to generate income from DDC’s Bitcoin treasury assets through derivatives and other institutional-grade instruments while maintaining security and compliance standards, according to a company press release. With projected revenue growth of 29% for the current fiscal year, DDC continues to expand its operational footprint. For deeper insights into DDC’s financial health and growth prospects, InvestingPro subscribers have access to over 10 additional key metrics and analysis tools.
"Partnering with QCP is a pivotal next step for DDC as we enhance our Bitcoin treasury’s strategic potential while minimizing risks," said Norma Chu, Founder, Chairwoman, and CEO of DDC.
QCP Group, a digital asset solutions provider headquartered in Singapore with an office in Abu Dhabi, will architect and execute customized strategies for DDC’s Bitcoin reserves. The firm has received in-principle approvals from regulatory authorities in Singapore and Abu Dhabi.
"Putting dormant assets to work is a foundational concept in traditional finance, and our mission is to bring that same level of sophisticated, risk-managed capability to the digital asset world," said Darius Sit, Founder & CIO of QCP.
DDC Enterprise Limited operates as an Asian food platform with brands including DayDayCook, Nona Lim, and Yai’s Thai, while also maintaining Bitcoin as a core reserve asset. The company reported revenue of $37.45 million in the last twelve months, with a gross profit margin of 28.41%.
The partnership represents a shift from passive holding to active management of corporate Bitcoin holdings, with the companies describing it as "setting a new standard for publicly-listed companies" in digital asset management.
In other recent news, DDC Enterprise Limited has made several strategic moves concerning its bitcoin strategy. The company filed a $500 million universal shelf registration with the U.S. Securities and Exchange Commission, which will allow it to raise funds through future securities offerings to expand its bitcoin holdings. This filing follows the securing of a capital commitment of up to $528 million, with $53 million already funded by partners such as Anson Funds, Animoca Brands, and Kenetic Capital. Additionally, DDC Enterprise has appointed Kyu Ho as Chief of Staff to lead its bitcoin strategy, bringing over 20 years of experience in finance and digital assets.
To bolster its bitcoin security measures, DDC has partnered with BitGo Trust Company for Bitcoin custody services, ensuring enterprise-grade security and regulatory compliance. The company also announced a $26 million equity private investment from investors, including Animoca Brands and Kenetic Capital, as part of its financing package. Furthermore, DDC secured a $300 million convertible secured note with Anson Funds, which will mature in 24 months without accruing interest. These developments reflect DDC’s focused efforts to expand and secure its bitcoin treasury.
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