Source: Cointelegraph
Original: “China-linked consumer brand 'DDC' plans to acquire 5,000 Bitcoin”
Mainland China, as one of the countries with the strictest restrictions on cryptocurrency globally, may be gradually approaching the adoption of cryptocurrency, as a locally operating brand has announced a Bitcoin (BTC) reserve strategy.
DDC Enterprise, also known as Daily Cook, an American consumer brand based in Hong Kong and operating in mainland China, is adopting a Bitcoin (BTC) reserve strategy, as announced by CEO Zhu Xiaoling in a shareholder letter on May 15.
As part of this strategy, DDC has purchased 100 Bitcoin for approximately $10.4 million and plans to accumulate 5,000 Bitcoin over the next 36 months, aiming to reach 500 Bitcoin by the end of 2025.
Zhu Xiaoling's announcement of the Bitcoin reserve came after the company reported a 33% increase in revenue for 2024, with total revenue reaching 273.3 million RMB ($37.4 million) according to the 20-F form submitted to the U.S. Securities and Exchange Commission (SEC) on May 15.
Despite the public announcement, DDC's latest filing with the SEC did 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 stated in the shareholder letter.
Zhu Xiaoling had previously announced DDC's intention to adopt a Bitcoin reserve strategy in another letter on March 18.
Although DDC's annual report did not mention the Bitcoin (BTC) reserve plan, the SEC filing hinted at the company's intention 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 noted, further adding:
"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 referenced the 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 stated, adding that if a company's financial reports have not yet been published, these new rules may be adopted early.
DDC's filings indicate that part of the company's business operates in mainland China and Hong Kong, making its financial condition and development significantly influenced by local political, economic, and social trends.
As of May 2025, mainland China has maintained strict restrictive policies on cryptocurrency trading and mining activities since local regulators announced a comprehensive ban on cryptocurrency trading in 2021.
However, several media reports speculate that with the increasing cryptocurrency adoption rate in Hong Kong and the global cryptocurrency development wave driven by the pro-crypto policies of President Donald Trump's administration, China may reconsider its stance on cryptocurrency regulation.
Despite mainland China's claim to "unban Bitcoin," some analysts have expressed skepticism, as even after the ban was imposed, China has remained a major player in Bitcoin mining globally.
Cointelegraph reached out to DDC for official comments regarding the Bitcoin reserve plan but had not received a response by the time of publication.
Related: Predictions based on gold models show: Bitcoin (BTC) reaching $220,000 by 2025 is "logical."
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