DDC Enterprise Ltd. (NYSEAM: DDC), a Chinese public company, reported record financial results for 2024 and announced plans to acquire 5,000 bitcoins ($BTC ) over three years as part of a new corporate reserve strategy. The initiative includes an immediate purchase of 100 BTC with the goal of having 500 BTC within six months.
DDC, listed on NYSEAM, is investing in 5,000 BTC
According to the shareholder letter, DDC's revenue for 2024 increased by 33% year-over-year to $37.4 million, driven by strategic acquisitions of brands in the U.S. and steady performance in its core Chinese market. Gross margin increased to 28.4%, compared to 25% in 2023, while adjusted EBITDA losses narrowed to $3.5 million.
Shareholders' equity grew by 33% to $11.3 million, supported by debt conversion and share issuance. CEO and Chairwoman Norma Chu outlined two key initiatives for 2025: a joint venture in China expected to generate $3 million in net annual profit, and a Bitcoin (BTC) reserve strategy. Chu called Bitcoin the 'cornerstone' of long-term value creation, citing its potential as a hedge against macroeconomic volatility.
Chu said:
The unique properties of Bitcoin as a store of value and a hedge against macroeconomic uncertainty perfectly align with our vision of diversifying reserves and enhancing shareholder returns.
DDC aims to accumulate 5,000 BTC by mid-2027 by deploying a dedicated treasury team and cryptocurrency advisors to manage purchases. As of March 31, 2025, the company had $23.6 million in cash and short-term investments, although specific figures on Bitcoin allocation were not disclosed.
Chu emphasized confidence in the transformative role of blockchain technology, positioning DDC as a pioneer in corporate adoption of digital assets. The strategy aligns with broader efforts to diversify reserves and enhance shareholder returns.
Looking ahead, DDC expects to achieve positive adjusted EBITDA in 2025 by leveraging operational efficiency and strategic investments. Shareholders were thanked for their support as the company seeks to 'shape the future' of corporate finance.
