Mainland China, one of many world’s most restrictive international locations to cryptocurrency, could also be inching nearer to crypto adoption as a locally-operating model has introduced a Bitcoin reserve technique.
DDC Enterprise, also called DayDayCook, a US shopper model with Hong Kong roots and operations in mainland China, is adopting a Bitcoin (BTC) reserve technique, its CEO Norma Chu announced in a shareholder letter on Could 15.
As a part of the technique, DDC has instantly acquired 100 BTC for roughly $10.4 million and plans to build up 5,000 BTC within the subsequent 36 months, with 500 BTC focused by the top of 2025.
Chu’s Bitcoin reserve announcement got here after the agency posted a 33% income enhance in 2024, with whole income amounting to 273.3 million Chinese language yuan ($37.4 million), according to its Kind 20-F submitting with the US Securities and Alternate Fee (SEC) on Could 15.
DDC’s Bitcoin plans lacking in SEC data
Regardless of the general public announcement, DDC’s newest SEC filings don’t explicitly point out the corporate’s Bitcoin holdings or a Bitcoin reserve technique.
“We’re embarking on a pioneering initiative to place DDC on the forefront of digital asset innovation with laser-focused execution on Bitcoin accumulation,” the DDC CEO stated within the shareholder letter.
Chu beforehand announced DDC’s intentions to undertake a Bitcoin reserve technique in one other letter on March 18.
Though DDC’s annual report doesn’t point out Bitcoin reserve plans, the SEC submitting does present a couple of hints to the corporate’s supposed adoption of BTC as a brand new asset class.
“The corporate [DDC] is evaluating methods to acquire the required extra funding for future operations,” the report reads, including:
“The Firm plans to diversify income streams and implement cost-saving measures to develop revenues and reduce bills. Nevertheless, the corporate could also be unable to entry additional fairness or debt financing when wanted.”
Moreover, the submitting refers to crypto disclosure pointers set by the accounting requirements replace by the Monetary Accounting Requirements Board (FASB) issued in late 2023.
“In December 2023, the FASB issued ASU 2023-08, “Intangibles, Goodwill and Different-Crypto Property (Subtopic 350-60). Accounting for and Disclosure of Crypto Property,” the submitting notes, including that companies are allowed to begin utilizing the brand new guidelines early if their monetary stories haven’t been revealed but.
China’s evolving stance on crypto
DDC’s submitting says that the agency partly operates in mainland China and Hong Kong, which places its monetary circumstances and progress below the affect of native political, financial and social developments.
As of Could 2025, mainland China has maintained a restrictive agenda on cryptocurrency buying and selling and mining since native regulators announced a major ban on crypto transactions in 2021.
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Nevertheless, many on-line stories speculated that China could carry its crypto ban amid rising adoption in Hong Kong, in addition to the continued international shift to crypto fueled by the crypto-friendly approach by the US administration below President Donald Trump.
However, some analysts have questioned mainland China’s plans to “unban Bitcoin” although it has one way or the other remained a major global player in Bitcoin mining after the ban was enacted.
Cointelegraph approached DDC for remark relating to its Bitcoin reserve plans however didn’t obtain a response by the point of publication.
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