Source: Cointelegraph
Original text: (Consumer brand 'DDC' with ties to China plans to acquire 5,000 Bitcoins)
Mainland China, known as one of the countries with the strictest cryptocurrency restrictions globally, may be gradually approaching the adoption of cryptocurrency, as a locally operating brand announced a Bitcoin (BTC) reserve strategy.
DDC Enterprise, also known as Daily Cook, an American consumer brand rooted in Hong Kong and operating in mainland China, is adopting a Bitcoin (BTC) reserve strategy, announced by CEO Zhu Xiaoling in a shareholder letter on May 15.
As part of this strategy, DDC has purchased 100 Bitcoins for approximately 10.4 million USD and plans to accumulate 5,000 Bitcoins over the next 36 months, aiming to reach 500 Bitcoins by the end of 2025.
Zhu Xiaoling's Bitcoin reserve announcement came after the company reported a 33% increase in revenue for 2024, with total revenue reaching 273.3 million RMB (37.4 million USD) according to the Form 20-F submitted to the U.S. Securities and Exchange Commission (SEC) on May 15.
Despite publicly announcing, the latest documents submitted to the SEC by DDC do not explicitly mention the company's Bitcoin holdings or Bitcoin reserve strategy.
"We are undertaking a groundbreaking plan to position DDC at the forefront of digital asset innovation by focusing on executing a Bitcoin accumulation strategy," the CEO of DDC stated in the shareholder letter.
Zhu Xiaoling had previously announced the intention to adopt a Bitcoin reserve strategy for DDC in another letter dated March 18.
Although DDC's annual report does not mention the Bitcoin (BTC) reserve plan, SEC filing documents reveal that the company intends to incorporate BTC as a new asset class.
"The company [DDC] is evaluating strategic options for obtaining additional funding needed for future operations," the report stated, adding further:
"The company plans to diversify its revenue sources and implement cost-cutting measures to enhance revenue and reduce expenses. However, the company may face difficulties in obtaining additional equity or debt financing when needed."
Additionally, the filing also referenced cryptocurrency disclosure guidelines established in the accounting standards update issued by the Financial Accounting Standards Board (FASB) at the end of 2023.
"In December 2023, the Financial Accounting Standards Board (FASB) released Accounting Standards Update (ASU) 2023-08, 'Intangible Assets, Goodwill, and Others - Crypto Assets (Subtopic 350-60). Accounting for and Disclosure of Crypto Assets,'" the document noted, adding that if a company's financial reports have not yet been published, these new rules may be adopted early.
Documents from DDC indicate that part of the company's business operates in mainland China and Hong Kong, which significantly affects its financial condition and development due to local political, economic, and social trends.
As of May 2025, mainland China has maintained strict restrictive policies on cryptocurrency trading and mining activities since the local regulatory authorities announced a comprehensive ban on cryptocurrency trading in 2021.
However, several media reports speculate that, with the increased cryptocurrency adoption rate in Hong Kong and the global cryptocurrency development wave driven by pro-crypto policies during President Donald Trump's administration, China may reconsider its stance on cryptocurrency regulation.
Although mainland China claims to 'lift the ban on Bitcoin,' some analysts have expressed skepticism, as even after the ban was imposed, China still maintains a significant position as a major player in Bitcoin mining.
Cointelegraph reached out to DDC regarding the Bitcoin reserve plan for official comment but had not received a response by the time of publication.
Related: Predictions based on the gold model indicate that Bitcoin (BTC) reaching $220,000 by 2025 is 'logical.'
