DDC Enterprise, a shopper model and e-commerce firm with operations within the U.S. and China, has launched a giant plan to make bitcoin (BTC) a key a part of its monetary technique.
The corporate simply purchased 21 BTC as step one in a plan to purchase as much as 5,000 BTC over the subsequent 3 years.
The transfer was announced in a press launch and a letter to shareholders by DDC’s founder, chairwoman and CEO Norma Chu.
The 21 BTC, value round $2.28 million at present costs, was purchased by way of a share change. DDC issued 254,333 class A abnormal shares.
“We’re totally dedicated to making sure the success of this technique, which aligns with our imaginative and prescient to drive long-term worth for our shareholders,” stated Norma Chu. “As we speak marks a pivotal second in DDC’s evolution.”
Chu is the primary feminine founder and CEO of a U.S.-listed public firm to steer a bitcoin-only treasury technique. DDC is among the first corporations in its trade to undertake this technique in such a structured approach.
DDC’s plan is being rolled out in phases. The corporate will purchase one other 79 BTC quickly and could have 100 BTC within the brief time period.
Within the subsequent 6 months, it should purchase 500 BTC, and long-term, it expects to construct a 5,000 BTC reserve over 36 months.
This phased strategy could permit DDC to handle market volatility and make the most of value actions.
In her current letter to shareholders, Chu known as the bitcoin technique “a cornerstone of our long-term worth creation plan”.
She stated bitcoin’s qualities – particularly as a hedge towards macroeconomic uncertainty and inflation – make it the right reserve asset for DDC. She added:
“Bitcoin’s distinctive properties as a retailer of worth and hedge towards macroeconomic uncertainty align completely with our imaginative and prescient to diversify reserves and improve shareholder returns.”
The announcement comes on the again of a record-breaking yr for DDC.
In 2024, the corporate made $37.4 million in income—a 33% enhance from 2023.
Gross margin improved from 25.0% in 2023 to twenty-eight.4% in 2024 on account of strategic acquisitions within the U.S. and extra environment friendly operations in China.
As of March 31, 2025 the corporate had $11.3 million in shareholder fairness and $23.6 million in money, money equivalents and short-term investments.
This provides DDC the pliability and credibility to do one thing as daring as this bitcoin accumulation plan.
DDC’s announcement comes as companies are getting more and more focused on including bitcoin to their steadiness sheet.
Whereas giants like Strategy have made headlines with massive bitcoin purchases, DDC is the primary e-commerce firm to take action.
The corporate’s twin presence in China and the U.S. additionally provides complexity, particularly with the completely different regulatory environments surrounding Bitcoin in every area.
To make sure correct execution, DDC has expanded its treasury and advisory groups to incorporate consultants within the bitcoin markets.
The corporate will use a mixture of greenback value averaging and tactical shopping for, adjusting purchases primarily based on market circumstances.
