- DDC Enterprise added 100 Bitcoin to its treasury, increasing total holdings to 1,183 BTC.
- Shares of DDC rose more than 23% at market open following the announcement.
- Despite share gains, retail sentiment remained ‘bearish’ on Stocktwits for both DDC and Bitcoin.
- Other digital asset treasury (DAT) companies turned to stock buybacks and asset sales amid crypto declines.
- Investor confidence in DAT firms is challenged by unrealized losses in Bitcoin and Ethereum holdings.
DDC Enterprise reported the purchase of 100 additional Bitcoin for its treasury on Wednesday, bringing its total holdings to 1,183 BTC. The announcement led to a surge of more than 23% in DDC shares at market open. However, retail sentiment tracked on Stocktwits continued to be ‘bearish’ for the company, with activity on the platform increasing to ‘high’ levels.
This move by DDC comes as digital asset treasury (DAT) companies adjust strategies in response to recent cryptocurrency price drops. The price of Bitcoin fell from over $126,000 in October to around $80,000 earlier this month. Several DAT firms took different approaches to address declining values. FG Nexus started a stock buyback program funded by $10 million in new loans and the sale of 10,922 Ethereum. ETHZilla sold about $40 million in Ethereum as part of its repurchase plan, and Sharplink initiated its own buyback effort rather than adding more ETH to reserves.
According to Norma Chu, founder, chairwoman, and CEO of DDC, the company’s approach focuses on the long term. “Rather than responding to day-to-day price fluctuations, we rely on our robust governance and risk-management capabilities to guide when and how we deploy capital,” she stated.
As of Wednesday morning, Bitcoin was trading at $87,200, reflecting a 0.5% increase in the past 24 hours. Retail sentiment toward Bitcoin also shifted negatively on Stocktwits, moving from ‘neutral’ to ‘bearish’.
Markus Thielen, CEO of 10x Research, recently said these treasury-focused firms face difficulties attracting new retail investors as many shareholders currently have unrealized losses. For example, investors in Strategy are estimated to have lost $20 billion in net asset value due to Bitcoin acquisitions made later in 2024. BitMine’s Ethereum assets are down by over $1,000 per coin, which equals roughly $3.7 billion in unrealized losses, according to the firm’s research.
For additional details, readers can refer to the analyst’s recent warnings.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- MegaETH DeFi Launch Chaos: KYC Bugs & Cap Missteps Freeze Deposits
- Crypto Network Effects Debate Sparks Valuation Controversy
- Crypto Copilot Chrome Extension Steals Solana via Hidden Fees
- Treehouse Doubles Token Value with New Buyback Program
- Deutsche Bank Keeps ‘Buy’ on Oracle, Cites OpenAI Deal Potential
