DDC Enterprise to Accumulate 5,000 BTC in 36 Months

DDC Enterprise Ltd., a prominent cross-border e-commerce company operating in China and the United States, has announced a strategic initiative to adopt Bitcoin as a reserve asset. The company aims to accumulate 5,000 bitcoins within the next 36 months, making it one of the first in its industry to integrate Bitcoin into its core financial strategy. This announcement was made by Norma Chu, the Founder, Chairwoman, and CEO of DDC, in a shareholder letter released today.

The plan involves an immediate purchase of 100 bitcoins, with a short-term target of increasing this to 500 bitcoins within six months. The ultimate goal is to reach 5,000 bitcoins by the end of the 36-month period. DDC will execute this strategy under the guidance of a newly expanded cryptocurrency expert advisory board and fund management team to ensure optimal implementation.

DDC Enterprise reported a strong performance in its 2024 fiscal year, achieving a revenue of $37.4 million, which represents a 33% year-over-year growth. The company's gross margin increased from 25.0% in 2023 to 28.4%, driven by strategic acquisitions in the United States and efficient operations in China. Shareholders' equity grew by 33% to reach $11.3 million. As of March 31, 2025, the company's cash, cash equivalents, and short-term investments are estimated to be $23.6 million.

This move by DDC Enterprise reflects a growing trend among corporations to diversify their reserves with Bitcoin, positioning themselves to hedge against potential currency devaluations and economic uncertainties. The decision to accumulate 5,000 BTC over three years is significant, given the volatility and regulatory challenges associated with cryptocurrencies. However, DDC Enterprise's commitment to this strategy suggests a strong belief in the long-term value and stability of Bitcoin.

The phased approach to building its reserves, starting with an immediate purchase of 100 BTC and an interim target of 500 BTC within six months, allows for adjustments based on market conditions and regulatory developments. This initiative is likely to influence other companies in the cross-border e-commerce sector and beyond, potentially spurring further discussions about the role of cryptocurrencies in corporate treasury management.

As more companies adopt Bitcoin as a reserve asset, it could lead to increased demand and potentially drive up the price of the cryptocurrency. The accumulation of 5,000 BTC by DDC Enterprise is a notable development in the world of corporate finance and cryptocurrency, highlighting the evolving landscape of digital assets and the growing recognition of Bitcoin as a legitimate investment and reserve asset. The impact of this strategy on DDC Enterprise's financial health and the broader cryptocurrency market will be closely watched in the coming years.