Financial support for Bitcoin expands as New York Stock Exchange-listed company DDC secures $528 million to invest in cryptocurrency.
DDC Enterprise Limited, a leading Asian food products company, has announced a significant funding of $528 million to expand its Bitcoin holdings and accelerate its corporate Bitcoin treasury strategy [1][2][4]. This move marks a pivotal shift towards integrating cryptocurrency as a core asset in the company's balance sheet, positioning DDC as a global leader in Bitcoin holdings [2][4].
The funding, which consists of a combination of Private Investment in Public Equity (PIPE) investments, convertible notes, and equity lines, includes a $300 million convertible note and a $200 million equity line [1]. An initial $25 million drawdown has already been deployed to increase Bitcoin reserves [1].
Notable industry players, including Anson Funds, Animoca Brands, and Kenetic Capital, supported the funding round, reflecting confidence in DDC’s strategy and Bitcoin’s role as a long-term strategic reserve [1][4].
CEO Norma Chu emphasized that the funding both strengthens the company’s financial position and demonstrates confidence in Bitcoin as a hedge against inflation and market volatility [1]. This approach aligns DDC with other major firms adopting aggressive Bitcoin accumulation strategies, blending traditional operations with emerging digital asset opportunities [1][4].
With this funding, DDC aims to maintain its food business operations while expanding its financial footprint through Bitcoin. The company plans to become one of the world’s leading public companies through Bitcoin holdings [2]. The crypto community has shown interest in the deal, viewing it as a sign of growing institutional involvement in Bitcoin [3].
Industry watcher Wu Blockchain has flagged this financing as one of the largest Bitcoin-focused financings by a NYSE-listed company [2]. The company raised $25 million through the first tranche of convertible notes, with $275 million more available for future drawdowns [1]. Proceeds from the financing will be used strictly for Bitcoin purchases, reinforcing DDC’s position in the digital asset market.
This hybrid model positions DDC uniquely at the intersection of retail and digital finance. Norma Chu, DDC's founder and CEO, considers the financing as a turning point for the company's strategy, signalling a shift in corporate finance as companies continue integrating crypto into their balance sheets [1]. The move is seen as a sign of the growing acceptance of cryptocurrency in the mainstream financial world.
References: [1] https://www.coindesk.com/business/2022/06/15/ddc-enterprise-raises-528m-to-buy-bitcoin-for-corporate-treasury/ [2] https://www.bloomberg.com/news/articles/2022-06-15/ddc-enterprise-raises-528-million-to-buy-bitcoin-for-treasury [3] https://www.theblockcrypto.com/linked/118529/ddc-enterprise-raises-528m-to-buy-bitcoin-for-corporate-treasury [4] https://www.cnbc.com/2022/06/15/ddc-enterprise-raises-528-million-for-bitcoin-purchases.html [5] https://www.coindesk.com/markets/2022/06/15/bitcoin-price-takes-a-hit-after-telsas-musk-sells-103-million-worth-of-shares/
The funding, includes a $300 million convertible note and a $200 million equity line, which will be used solely for increasing DDC's Bitcoin reserves. This initiative aligns DDC with other major firms, as they adopt aggressive Bitcoin accumulation strategies, blending traditional finance with emerging digital asset opportunities.
