DDC Enterprise Limited announced that it has entered into three securities purchase agreements for a total of up to $528 million in gross proceeds to the company, before deducting placement agent fees and offering expenses. The 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 raised will be dedicated to expanding the company’s Bitcoin treasury.
This transformative financing, which is 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.
1.) $26 Million Equity PIPE Investment – The company entered into subscription agreements with premier investors, including Animoca Brands, Kenetic Capital, QCP Capital, Jack Liu, Matthew Liu (Co-Founder, Origin Protocol), and other leading institutional funds and individual Bitcoin investors. And subject to standard closing conditions, DDC expects to issue up to 2,435,169 Class A Ordinary shares at an average price of $10.30 per share. The shares will be restricted for a period of 180 days.
2.) $300 Million Convertible Secured Note and $2 Million Equity Private Placement – With Anson Funds as the investor, an institutional investment firm with offices in the US and Canada, the convertible secured note accrues no interest and will mature in 24 months. Under the facility, 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, subject to mutual agreement between the parties. Anson Funds is also buying 307,693 Class A Ordinary shares for $2 million in a concurrent private placement.
3.) $200 Million Equity Line – The $200 million equity line of credit (ELOC), which was 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. Substantially all of the gross proceeds from the financings will be deployed to acquire Bitcoin.
Advisor: Maxim Group acted as the exclusive financial advisor in connection with the offering.
KEY QUOTES:
“Today is a defining moment for DDC Enterprise and our shareholders. This capital commitment of up to $528 million, backed by respected institutions from both traditional finance and the digital asset frontier, represents a strong mandate to execute an ambitious corporate Bitcoin accumulation strategy globally. Our vision is unequivocal: we are building the world’s most valuable Bitcoin treasury.”
“This funding is expected to propel DDC into one of the top global corporate Bitcoin holders. This investment by Anson Funds and the group of PIPE investors is a resounding validation of Bitcoin’s important role in future corporate balance sheets. At DDC, we will deploy this capital with institutional discipline and unwavering conviction, cementing our position as the premier bridge between global capital markets and the Bitcoin ecosystem. DDC Enterprise is strongly positioned as the definitive publicly-traded vehicle for concentrated Bitcoin exposure and value creation. My focus will be on growing our BTC treasury and delivering attractive BTC yield consistently for our shareholders.”
Norma Chu, Founder, Chairwoman & CEO of DDC Enterprise
