Why Did DDC Enterprise Stock Plunge 10.23% After Bitcoin Reserve Shift?

On May 19, 2025, DDC Enterprise experienced a significant drop of 10.23% in pre-market trading, marking a notable decline in its stock performance.

DDC Enterprise, a prominent Chinese-American e-commerce player, has announced a strategic shift by adopting Bitcoin as a reserve asset. The company plans to accumulate up to 5,000 BTC over the next three years, starting with an initial purchase of 100 BTC worth $10.4 million. This move aligns with a broader global trend of companies integrating cryptocurrencies into their financial strategies.

This decision comes at a time when the U.S. is considering a major shift in its crypto strategy, with a proposed 2025 bill suggesting the use of gold profits to purchase Bitcoin. This legislative move, if passed, could signal a significant change in the U.S. government's approach to digital currencies, potentially influencing market sentiment and investor behavior.

Bitcoin's price volatility has been a key factor in the market's recent performance. The cryptocurrency started the week on a weaker note, falling by more than 3% to around $103,000. This price movement has been influenced by various factors, including regulatory developments and market speculation. DDC Enterprise's decision to adopt Bitcoin as a strategic reserve asset could further impact the cryptocurrency's price dynamics, as it adds to the growing list of companies recognizing Bitcoin's value as a store of wealth.