DDC Enterprise sells frozen asian food. dumplings, noodles, that kind of stuff. sometime in 2025 the CEO decided that wasn't exciting enough and started buying bitcoin every week. they now have 2,899 BTC. at \~$84k that's around $244M.
the whole company is worth like $14M right now. stock's at 23 cents.
yes I checked it three times.
so naturally I went looking for the catch, and there's a few:
the share count is exploding. 23M shares at the start of the year, 45M by june, 58M now. so every few weeks your slice of the bitcoin pie gets smaller. they're issuing new shares at 20 cents when each share has like $3 of bitcoin behind it. that's not great for us
most of their big "$528M raise" was a convertible note + equity line from Anson Funds. if you've touched small caps before you know what that usually means
actual cash is \~$2.5M. they announced a $10M buyback anyway. sure buddy
there's a $59M line item called
"prepayments and other current assets" and the filing doesn't really say what it is
the founder got super voting rights approved in july so nobody's forcing them to hand back the bitcoin. and they already did a 1:25 reverse split last year, another one is authorized
stock is down 98% in a year. so yeah
BUT. the stuff that surprised me:
the $51M in loans that were backed by their bitcoin got paid off in H1. so the coins aren't pledged anymore (at least according to the filing). total liabilities are \~$71M. take that off the bitcoin and you still get roughly $3.30 per share in net assets. stock is at $0.23
food business isn't dead either. revenue up 29%, slightly positive adjusted EBITDA
if BTC goes to 100k the math gets kinda stupid. even if the market keeps valuing it at a massive discount it's still a multi-bagger from here
so is it the cheapest bitcoin on earth or a value trap that comes with a free spring roll?
TLDR: buy $DDC, pump it to a 20x Bagger and/or drop to 0.