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 client model with Hong Kong roots and operations in mainland China, is adopting a Bitcoin (BTC) reserve technique, its CEO Norma Chu introduced in a shareholder letter on Might 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 complete income amounting to 273.3 million Chinese language yuan ($37.4 million), in accordance with its Kind 20-F submitting with the US Securities and Alternate Fee (SEC) on Might 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 introduced 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 number of hints to the corporate’s meant adoption of BTC as a brand new asset class.
“The corporate [DDC] is evaluating methods to acquire the required further 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. Nonetheless, 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 start out utilizing the brand new guidelines early if their monetary reviews haven’t been printed 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 development underneath the affect of native political, financial and social developments.
As of Might 2025, mainland China has maintained a restrictive agenda on cryptocurrency buying and selling and mining since native regulators introduced a significant ban on crypto transactions in 2021.
Associated: US-China commerce deal might make clear Bitcoin’s use case: Dealer
Nonetheless, many on-line reviews speculated that China could raise its crypto ban amid rising adoption in Hong Kong, in addition to the continued world shift to crypto fueled by the crypto-friendly strategy by the US administration underneath President Donald Trump.
Alternatively, some analysts have questioned mainland China’s plans to “unban Bitcoin” even supposing it has someway remained a significant world participant in Bitcoin mining after the ban was enacted.
Cointelegraph approached DDC for remark concerning its Bitcoin reserve plans however didn’t obtain a response by the point of publication.
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