Key Takeaways
- DDC launched a Bitcoin reserve strategy targeting 5,000 BTC.
- The firm began with a 100 BTC purchase and plans to reach 500 BTC in six months.
- DDC reported $37.4M revenue in 2024, up 33% year-over-year.
DDC Enterprise Limited (NYSEAM: DDC) has announced a major shift in its treasury management strategy with plans to accumulate up to 5,000 Bitcoin over the next three years.
The announcement came alongside DDC’s full-year 2024 results, released Thursday in a shareholder letter by CEO and founder Norma Chu.
Initial Bitcoin acquisition
The Hong Kong-founded, New York-listed company confirmed the immediate purchase of 100 BTC and aims to acquire 500 BTC within six months.
Its long-term goal is to hold 5,000 BTC by 2028.
Chu said:
Bitcoin’s unique properties as a store of value and hedge against macroeconomic uncertainty align perfectly with our vision.
Strategy management
The strategy will be managed by a newly formed treasury team and a crypto-native advisory board to ensure disciplined and risk-aware execution.
Financial performance
The initiative follows a year of strong financial performance.
DDC reported $37.4 million in 2024 revenue, a 33% year-over-year increase, driven by U.S. brand acquisitions and stable growth in China.
Gross margin rose to 28.4%, and adjusted EBITDA loss narrowed to $3.5 million.
Balance sheet improvement
The company’s balance sheet also improved, with shareholders’ equity up 33% to $11.3 million and $23.6 million in cash and short-term investments as of March 31.
Future growth prospects
In addition to the Bitcoin strategy, DDC expects further growth from a new joint venture in China projected to deliver $3 million in annual net profit for the next five years.
