DDC Raises $528M to Purchase Bitcoin
DDC Enterprise Limited (NYSE: DDC) shares declined Tuesday, on word it has entered into three securities purchase agreements for a total of up to $528 million of gross proceeds to the Company, before placement agent fees and offering expenses. Investors include Anson Funds, Animoca Brands, Kenetic Capital, QCP Capital, and a network of leading institutional funds and individual Bitcoin investors.
Substantially all of the capital raise will be dedicated to expanding the Company’s Bitcoin treasury. This transformative financing, among the largest single-purpose Bitcoin raises by any NYSE-listed company, is expected to accelerate DDC's mission to establish one of the most valuable corporate Bitcoin holdings.
With Anson Funds as the investor, an institutional investment firm with offices in the United States and Canada, the convertible secured note accrues no interest and will mature in 24 months.
The company will issue a note in the aggregate principal amount of $25 million as its first tranche, with additional capacity of up to $275 million available in subsequent drawdowns upon mutual agreement of the parties. Anson Funds is also purchasing 307,693 Class A Ordinary shares for $2 million in a concurrent private placement.
The $200-million equity line of credit, also secured with Anson Funds, is designed to offer DDC maximum flexibility in accessing capital for dedicated BTC stacking. With the ELOC, upon its future commencement following registration, the Company can optimize market timing and can consistently make BTC purchases over time at management discretion.
DDC shares retreated $1.44. or 12.4%, to $10.16.
