🔵 #Can BTC Break $110K?#
Bitcoin recently broke above $107,000 and is currently trading around $105,000, just shy of its all-time high at $109,580. Do you think Bitcoin can set a new record and push past $110,000? Share your analysis and predictions with us!
🔵 #AI Token Market Cap Rebounds#
According to CoinGecko, the total market cap of the AI agent sector has rebounded to $6.862 billion, with a 1.2% increase in the past 24 hours. Notably, VIRTUAL surged 18.5%, and AI16Z rose 7.1%. Which AI tokens are you bullish on? How are you planning your portfolio strategy? Let’s hear your thoughts!
Chinese listed company DDC announces Bitcoin reserve strategy with a target of 5000 BTC holdings.
The US-listed consumer food brand "DayDayCook (DDC)" announced on the 15th its plan to adopt Bitcoin as a strategic reserve asset.
Founder and CEO Norma Chu explained in a letter to shareholders that this strategy was adopted as a "pioneering effort to position DDC at the forefront of digital asset innovation." It was also revealed that the company has already purchased 100BTC.
The DDC's Bitcoin strategy is overseen by a dedicated financial management team and a newly expanded cryptocurrency advisory committee, aiming to hold 5,000 BTC over the next three years and 500 BTC by the end of 2025.
DDC is a food brand based in Hong Kong that operates in mainland China and was listed on the New York Stock Exchange in 2023. It is engaged in the development, manufacturing, and sales of foods for a healthier lifestyle, as well as cooking recipes, content distribution, and advertising services. In 2024, the revenue is expected to be 273.3 million yuan (approximately 5.4 billion yen), marking a solid growth of 33% year-on-year.
Factors contributing to the significant increase in sales include the strategic acquisition of a US brand and the strong performance of the core business in China. Additionally, the recently announced partnership with a Chinese venture company is expected to generate an annual net profit of 3 million dollars (approximately 435 million yen) over the next five years.
Against the backdrop of such strong performance, DDC is working on diversifying its reserves, including cryptocurrencies. Mr. Chu stated, "Bitcoin is a hedge against macroeconomic uncertainty and the foundation for long-term value creation," emphasizing the importance of Bitcoin investment as part of corporate financial strategy.
Measures against China's regulations
On the other hand, for DDC, which operates in mainland China, a concern regarding the Bitcoin reserve plan is the issue of cryptocurrency regulation in China. Since 2021, China has completely banned cryptocurrency trading and mining, and this regulation is still in effect.
However, holding virtual currencies is not explicitly prohibited in China. DDC has expressed a policy of holding Bitcoin as a "strategic reserve asset" for the long term, and it is possible that they are leveraging this regulatory gray area.
In addition, since DDC has a base in Hong Kong, it is expected to take advantage of Hong Kong's relaxed regulatory environment to establish its position as a major hub for cryptocurrencies in Asia. Measures such as purchasing Bitcoin through a Hong Kong corporation and using funds raised in the U.S. or Hong Kong to allocate funds for Bitcoin purchases that are not subject to Chinese regulations could also be considered.
DDC announced in March that, in exchange for a group of investors contributing 100 BTC to DDC's financial reserves, it would issue common stock based on a tiered premium pricing model. The shares will be issued in a range of $0.50 to $1.25, with a premium of 100% to 400% compared to the recent trading levels.
Improving transparency and future prospects
Regarding the Bitcoin reserves of DDC, it has been disclosed in a letter to shareholders, but the latest filing with the U.S. Securities and Exchange Commission (SEC) does not provide clear mention of strategies or Bitcoin holdings.
Amid voices suggesting that this may not be a consideration for Chinese regulators, such a lack of transparency could lead to a decline in investor trust and negatively impact stock prices, posing challenges in the future.
DDC's strategy involves risks such as transparency risks, price volatility risks of Bitcoin, and the risk of increased cryptocurrency regulation in mainland China.
On the other hand, the movement of DDC is in line with the global trend of Bitcoin adoption. In the United States, the Trump administration has put forward policies to promote virtual currencies, establishing strategic Bitcoin reserves. The trend of increasing Bitcoin holdings and the establishment of reserves is spreading at the corporate, state, and national levels.
El Salvador's adoption of Bitcoin as legal tender is well known, but attention has also turned to Bhutan, which holds Bitcoin acquired through mining. Additionally, a Taiwanese legislator has proposed the establishment of Bitcoin reserves, and recently it has been reported that legal frameworks are being developed in Ukraine for the creation of reserves.
DDC is leveraging funding raised in Hong Kong and overseas to advance its Bitcoin holdings while avoiding regulations in China. The activities of DDC, which operates in mainland China, will be closely watched to see how they develop in light of the actions of Chinese authorities.