In the autumn of 2025, people began to reassess the DAT sector, which had sparked a frenzy in the summer.
On October 16, Tom Lee, Chairman of BitMine and former Chief Strategist at JPMorgan, candidly stated in an interview with Fortune Crypto that the "bubble of DAT has burst."
This statement sounds harsh, but it is not unfounded.
According to a research report released by Galaxy Digital in July, DAT companies collectively hold over $100 billion in digital assets. Although this scale is enormous, $71.8 billion of that value is concentrated in Bitcoin held by Strategy alone, which has allowed Strategy to amass over $28 billion in unrealized profits.
Excluding this giant, the total holdings of all other DAT companies add up to just over $30 billion, accounting for less than 1% of the $3.8 trillion cryptocurrency market.
Changes in valuation further illustrate the issue. Many DAT companies that went public this summer have seen their stock prices fall below their net asset values. This means that investors can buy Bitcoin ETFs at a lower price rather than paying a premium for these companies' "capital flywheel" stories.
In the third quarter of 2025, the number of publicly traded companies holding Bitcoin surged by nearly 40%, yet Bitcoin prices remained relatively stable, indicating a subtle shift in the market's supply and demand dynamics. The summer frenzy has faded, and the DAT sector is entering a phase of restructuring, where only genuine execution capabilities can uphold the value of the narrative.
However, in such a market environment, DDC Enterprise (NYSE: DDC) secured a rare financing deal. The scale of $124 million was led by top institutions such as PAG and Mulana Investment Management. The issuance price was set at $10 per share, a 16% premium over the closing price on October 7, with over 90% of the funds committed to a 180-day lock-up.
In a climate of "tide receding," such terms are uncommon. More importantly, founder, chairman, and CEO Zhu Jiaying personally invested $3 million in the deal. In a period where capital has become cautious, the management's willingness to share risks with shareholders is a signal in itself.
What makes DDC special is that it spans two worlds. It is an Asian food platform rooted in reality, maintaining an annual growth rate of about 30% over the past few years, with stable operations and sufficient cash flow; at the same time, it is among the top 50 Bitcoin treasury companies in the world.
This combination of "traditional + cutting-edge" is rare in the DAT sector. Most DAT companies transform through shell companies or start from scratch, leveraging narratives to attract capital. DDC is different; it has a genuinely profitable business as its foundation. This foundation provides it with breathing room amid market fluctuations and allows it not to rely entirely on financing to sustain growth.
As the DAT sector shifts from frenzy to rationality, DDC's financing becomes particularly intriguing. What does it signify? What is the strategic logic behind this company? While pursuing aggressive Bitcoin accumulation goals, how does it maintain financial discipline and prove its value to investors in a skeptical market?
With these questions in mind, we spoke with DDC's founder and CEO Zhu Jiaying for an in-depth discussion.
Counter-Cyclical Financing
In the current cooling of the DAT sector, "financing capability" has become the most scarce resource.
Research from Galaxy Digital shows that DAT companies' models heavily rely on the premium of stock prices relative to net asset value (NAV). As long as the stock price is above NAV, every $1 of new shares issued can be exchanged for more than $1 worth of Bitcoin, thus turning the capital flywheel.
However, once the stock price falls below NAV, the flywheel stops, and the company faces financing difficulties, forcing it to hit the brakes on expansion.
The valuation of DDC's recent financing was determined based on the average trading price over the past 15 days, with the issuance price being 33% higher than the market price. Such a premium is rare in today's market.
Even rarer is that over 90% of investors agreed to a 180-day lock-up. Therefore, we can consider this not a short-term arbitrage transaction but a long-term bet based on trust.
In this chapter, Zhu Jiaying elaborates on the key factors for the success of the financing and how DDC creates value for shareholders through optimizing capital efficiency.
BlockBeats: Congratulations to DDC for successfully completing the $124 million financing. Currently, the heat in the DAT sector has decreased compared to before. Could you share what the key factors were for successfully completing this round of financing in the current market environment? How was the valuation for this round of financing determined?
Zhu Jiaying: Thank you. I believe there are several factors.
I think finding like-minded investors who support DDC's vision in the long term is key. This requires our company to effectively communicate and maintain good interactions with external stakeholders, enabling them to understand DDC's long-term goals rather than overly focusing on short-term price fluctuations in the DAT sector.
Fortunately, as a company, we have built many solid investor relationships over the past 12 years, and they are very familiar with me as the founder, as well as our company and DDC. I believe this trust relationship takes years to establish.
The valuation for this round of financing was based on our average trading price over the past 15 days.
BlockBeats: This round of financing attracted top investment institutions like PAG and Mulana Investment Management. What qualities or strategies of DDC do you think are most appealing to them? Besides funding, in what other areas do you expect to gain support from these institutions?
Zhu Jiaying: We are very fortunate to welcome these top institutions as new shareholders.
I believe they are optimistic about DDC because, as a Bitcoin treasury company, we can manage and appreciate assets more efficiently than simply holding Bitcoin. This reflects their trust in our management team's execution capabilities—we can generate higher returns from the Bitcoin in the treasury than from direct holding.
In addition to financial support, I think establishing solid cooperative relationships with these top investment institutions is very important, and I believe we can learn a lot from them.
BlockBeats: Could you provide specific details about the planned use of funds? For example, the pace of Bitcoin purchases, custody plans, and risk management measures?
Zhu Jiaying: 100% of the funds raised in this round of financing will be used to purchase Bitcoin.
However, we will not disclose the details of the purchase pace or custody plans. The purchase pace will be dynamically adjusted based on multiple factors, including market conditions. We may also deploy customized structured products to help optimize Bitcoin purchases at the lowest cost.
Regarding custody, we typically collaborate with multiple institutional-grade custody service providers to diversify the storage of Bitcoin and reduce single-counterparty risk.
The Deep Logic Behind DDC's Strategic Transformation
DDC's transformation from a traditional consumer enterprise to a digital asset treasury is quite bold, but behind it lies a clear judgment of the changes in the macro environment and monetary system.
Over the past five years, the balance sheets of major global central banks have expanded dramatically, with the growth rate of M2 money supply far exceeding GDP growth, and the purchasing power of fiat currency has continued to be diluted. This is a reality that all companies face.
In such an environment, how to prevent the balance sheet from being eroded by inflation has become a strategic challenge for every company.
The scarcity of Bitcoin gives it the potential to counteract the depreciation of fiat currency in the long term. More importantly, as global financial infrastructure evolves, Bitcoin is transitioning from a purely speculative asset to an asset class that can be used as collateral, similar to gold in the traditional financial system.
Research from Galaxy Digital points out that an important reason for the existence of DAT companies is regulatory arbitrage. Trillions of dollars in institutional capital worldwide, including pension funds, sovereign wealth funds, and endowment funds, are restricted by regulations from directly holding digital assets but can invest in publicly traded companies.
DAT companies open a "compliant holding" window for this institutional capital. Investors are purchasing not only the Bitcoin on the balance sheet but also the potential for regulatory arbitrage and capital formation flywheels.
However, this model has also drawn considerable skepticism. Some believe that the core of DAT is merely a narrative game, where companies announce Bitcoin purchases, drive up stock prices, refinance, and then buy more Bitcoin, repeating the cycle. More radical voices even compare it to a Ponzi structure.
In this chapter, Zhu Jiaying responds to these doubts, discussing her perspective on the transformation logic and the different path DDC aims to take.
BlockBeats: From a cooking platform to DAT, DDC's transformation is very striking. How do you explain the internal logic and long-term value of this strategic shift to investors and the market?
Zhu Jiaying: As a publicly listed company, we recognize our fiduciary responsibility to shareholders and must continuously seek ways to enhance shareholder value.
Understanding the fundamental logic of the monetary system helps explain why it is necessary to hold Bitcoin in the treasury—it can prevent shareholder value from being eroded by fiat currency depreciation. Bitcoin is our tool for protecting and growing shareholder value.
Given the significant increase in global liquidity over the past five years and the impact on fiat currency value, this strategic shift is a natural adjustment.
BlockBeats: The Bitcoin treasury strategy is, to some extent, a narrative game, where companies attract market attention by announcing Bitcoin purchases, driving up stock prices, and then using high stock prices to refinance and buy more Bitcoin. How do you view this "narrative-driven" business model? How does DDC avoid falling into the trap of passing the buck?
Zhu Jiaying: There are some misunderstandings about the DAT field.
One of them is the belief that DAT companies are merely driven by narratives, which is an overly simplistic view. Once you understand the value of Bitcoin and its role on a company's balance sheet, you will find that Bitcoin is evolving from an appreciating asset to an asset class that can be used as collateral, similar to gold.
This is a macro, long-term trend. Companies that truly understand and believe in this structural change will actively and quickly accumulate Bitcoin. Since the DAT sector is still in its early stages and external understanding is limited, different companies will have varying development paths, and the market will ultimately distinguish between the good and the bad.
Another misunderstanding is comparing Bitcoin companies to Ponzi schemes.
In reality, this characterization is inaccurate. Ponzi schemes rely on future funding commitments without actual asset backing, while DAT companies increase their real Bitcoin holdings through financing, with their value being genuinely supported, which is entirely different from a Ponzi model.
BlockBeats: Michael Saylor is the godfather of the Bitcoin treasury strategy, and his personal charisma and evangelism have attracted significant attention to Strategy. Do you think DDC needs a spiritual leader like Saylor? Are you willing to take on such a role?
Zhu Jiaying: Michael Saylor is unique; no one can or should try to imitate him. His influence and status in the Bitcoin community are solid. I believe that DDC or other Bitcoin treasury companies should not attempt to replicate him. However, every company needs to find its own identity and market expression, whether through a well-known figure within the company or a unique brand story and narrative.
The Nuances of Capital Strategy
The success of Strategy largely stems from its aggressive capital approach. The company has built a high-leverage flywheel by issuing zero-coupon convertible bonds and preferred shares, amplifying its returns when Bitcoin prices rise.
However, this same structure also conceals risks.
Research from Galaxy Digital points out that the core vulnerability of the DAT model lies in its dependence on stock price premiums. Once the stock price falls below net asset value, or if the financing window closes, companies that rely on PIPE or high leverage will face severe pullbacks.
Currently, DDC primarily relies on equity financing. While this approach slows down the pace of expansion, it also reduces financial risk. Based on the current Bitcoin price, increasing from 1,083 to 10,000 Bitcoins would require approximately $1 billion. This $124 million financing is just the beginning; DDC will need to continuously secure more capital support in the future.
So, will the company adopt Strategy's debt financing model? How will it find a balance between rapid accumulation and risk control? In this chapter, Zhu Jiaying elaborates on DDC's diversified financing strategy and the key metrics the company has set to support future financing.
BlockBeats: After completing this round of financing, does the company have preliminary plans for the next round? DDC currently relies mainly on equity financing; will it consider adopting Strategy's debt financing model in the future?
Zhu Jiaying: DDC will continue to increase its Bitcoin treasury holdings. Our future financing channels will remain diversified in response to market conditions, including various financing tools in the public market, as well as structured and privately negotiated financing solutions.
BlockBeats: To support the next round of financing and achieve a higher valuation, what key milestones does DDC plan to achieve in the next 12 to 18 months? Besides Bitcoin holdings, what other core business metrics are you focusing on?
Zhu Jiaying: Our goal by the end of the year is to grow DDC's Bitcoin reserves to 10,000 Bitcoins. In our Bitcoin accumulation strategy, the core business metric we focus on is ensuring that the dilution effect creates additional value for shareholders. In the long term, we believe Bitcoin is an appreciating asset, so we need to accumulate Bitcoin in a fast and disciplined manner.
Execution Challenges
Growing from 1,058 to 10,000 Bitcoins, a nearly tenfold increase target, seems ambitious, but turning it into reality is not easy.
The first challenge is timing. Bitcoin's volatility is well-known, and in such a market, when and how to buy becomes a test. It requires not just luck but the management's judgment and execution discipline to avoid chasing highs or missing lows.
The second challenge is money. At the current Bitcoin price of about $110,000, increasing from 1,083 to 10,000 Bitcoins would require around $1 billion. This $124 million financing is merely a starting point. DDC will need to continue financing in the future, and with many DAT companies' stock prices falling below net asset value, whether it can still secure market funds is itself a question mark.
The third challenge is risk. Bitcoin's extreme volatility will directly reflect on the company's balance sheet. The key is whether DDC can stabilize itself in extreme market downturns without being forced to sell its holdings. This is precisely the question its risk management framework needs to address.
In this chapter, Zhu Jiaying details DDC's execution strategies and risk control measures, showcasing its financial discipline as a publicly listed company with 12 years of history.
BlockBeats: The company has set a goal of holding 10,000 Bitcoins by the end of 2025. What do you see as the biggest challenge in achieving this goal, and how will the company respond?
Zhu Jiaying: The biggest challenge in achieving the 10,000 Bitcoin goal is managing the timing of purchases due to changes in the macro environment.
We adopt a phased, disciplined, and flexible accumulation strategy, adjusting based on market conditions. We also use risk management tools such as hedging and liquidity reserves to guard against downside risks. The team continuously monitors market dynamics and relies on data-driven decisions to optimize purchase timing and maintain flexibility.
BlockBeats: As a publicly listed company, how does DDC balance the enormous potential of Bitcoin investments with the financial risks posed by its price volatility? What does the company's risk management framework look like?
Zhu Jiaying: Bitcoin volatility is a recognized characteristic. The core of our risk management framework is to avoid excessive leverage to prevent being forced to sell Bitcoin during a bear market. We regularly conduct internal scenario analyses and stress test the balance sheet. We view Bitcoin accumulation as a long-term strategy, ensuring that execution is cautious and disciplined.
Dual-Engine Drive
In the DAT sector, most companies transform through shell companies or build from scratch. Their business models heavily rely on rising Bitcoin prices and the ability to raise funds in capital markets; if either of these conditions falters, the company will find itself in trouble.
What sets DDC apart is that it has a real, operational, and profit-generating traditional business as its foundation. This Asian food platform has maintained an annual growth rate of about 30% over the past few years, providing the company with stable cash flow.
This dual-engine model theoretically offers significant advantages. The traditional business can provide financial cushioning during market downturns, reducing the company's reliance on external financing; meanwhile, the Bitcoin treasury strategy offers shareholders a hedge against fiat currency depreciation and the opportunity to capture long-term appreciation of digital assets.
However, whether these two businesses can generate genuine synergies or merely coexist will largely determine whether DDC can truly realize its differentiated value.
In this chapter, Zhu Jiaying discusses the development prospects of the traditional business and the company's exploration of integrating blockchain technology with consumer business.
She also shares her thoughts on the company's strategic flexibility and offers advice to individual investors. These responses reflect how a manager seeks to balance long-term vision with strategic adaptability in a rapidly changing market environment.
BlockBeats: How will DDC's existing Asian food platform business develop? Is there a synergy between these seemingly different businesses?
Zhu Jiaying: Over the past few years, our core food business has maintained an annual growth rate of about 30%.
In the future, we expect the integration of blockchain technology with our core food business to create synergies, such as launching a tokenized rewards system to enhance customer experience and core business value.
BlockBeats: In the face of a rapidly changing macroeconomic environment and digital asset market, how will DDC maintain its strategic flexibility and adaptability?
Zhu Jiaying: As a 12-year-old company, we understand market cycles and volatility risks. We always adhere to our long-term vision but are also willing to adjust and adapt based on the macro environment.
BlockBeats: What advice do you have for individual investors interested in DDC? How should they understand and evaluate DDC's long-term investment value?
Zhu Jiaying: I recommend not to overly focus on short-term stock price fluctuations but to deeply understand the management team's actions and long-term goals, observing whether execution brings shareholder value.
The Bitcoin treasury public company sector is young and still developing, so investors need to have long-term patience. Over time, the market will distinguish the development paths of different companies, allowing investors to choose which companies to support.
BlockBeats: What is your ultimate vision for DDC?
Zhu Jiaying: To enable the company to continue growing and create long-term, sustainable value for shareholders.
Finding Order in Chaos
Tom Lee's statement about the "bursting bubble" essentially reflects a rational return of the market to the DAT sector.
During the frenzy of summer 2025, over 200 publicly listed companies announced plans to purchase Bitcoin, but how many of these companies possess genuine execution capabilities and risk management skills is now being answered by the market through stock prices. Those companies lacking substantial asset backing and overly reliant on narrative-driven strategies are experiencing painful corrections in their valuations.
However, this correction does not signify the failure of the DAT business model; rather, it indicates that the sector has entered a phase of survival of the fittest. According to research from Galaxy Digital, the 791,662 Bitcoins held by DAT companies account for 3.98% of the circulating supply. While this proportion is not large, it is sufficient to impact the market.
More importantly, as global financial infrastructure evolves and regulatory environments change, the trend of companies incorporating digital assets into their balance sheets may be irreversible. The question is not whether this trend exists, but which companies can survive and create value within it.
DDC's advantage lies in the strategic depth brought by its dual identity. On one hand, its Asian food platform business provides stable cash flow and a business foundation, allowing it not to rely entirely on the capital market's financing capabilities; on the other hand, its Bitcoin treasury strategy offers shareholders a tool to hedge against fiat currency depreciation.
This combination theoretically reduces the risk of a single business model, but whether it can truly generate synergies in practice will require time to test.
Equally needing verification is DDC's execution capability. Growing from 1,083 to 10,000 Bitcoins, a nearly tenfold increase target means the company needs to continuously finance and purchase over the next year.
Zhu Jiaying has her own understanding of the monetary system and capital markets. She consistently emphasizes restraint, especially regarding leverage, which makes DDC's path appear steadier and more realistic.
In a market full of uncertainties, the real challenge lies in execution. The ability to maintain rhythm amid volatility and not lose direction during expansion will determine how far the company can go. How DDC's story ultimately unfolds will depend on its ability to fulfill its promises in future execution and prove its differentiated value in competition. The market will provide answers, and time will serve as the test.
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