DDC Countercyclical Financing, Continuing to Bet on Bitcoin in a DAT Downturn

In the fall of 2025, people began to reexamine the DAT track that had sparked a frenzy in the summer.

On October 16, BitMine Chairman and former JPMorgan Chief Strategist Tom Lee, in an interview with Fortune Crypto, bluntly stated that the DAT "bubble has burst."

While this statement may sound harsh, 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 substantial, $71.8 billion of the value is concentrated in Strategy alone, allowing Strategy to have over $28 billion in unrealized profits.

Excluding this giant, all other DAT holdings combined amount to just over $30 billion. In the $3.8 trillion crypto market, this represents less than 1%.

Valuation changes further illustrate the issue. Many DAT companies that went public this summer have seen their stock prices fall below net asset value. This means investors can now buy a Bitcoin ETF at a lower price, bypassing the premiums paid for the "capital flywheel" stories of these companies.

In the third quarter of 2025, the number of publicly held Bitcoin companies surged by nearly 40%, yet the price of Bitcoin remained relatively stable, indicating a subtle shift in the market's supply and demand dynamics. As the frenzy of summer fades, the DAT track is entering a phase of restructuring, where only real execution can support the value of the narrative.

However, in such a market environment, DDC Enterprise (NYSE: DDC) secured a rare financing. With a size of $124 million, led by top institutions such as PAG and Mulana Investment Management. The offering price was $10 per share, a 16% premium to the closing price on October 7, with over 90% of the funds committed locked up for 180 days.

In a sea of "ebb tide," such terms are not common. What's more critical is that the Founder, Chairman, and CEO, Jia Ying Zhu, personally invested $3 million. In this cycle of cautious capital, the management's willingness to share risks with shareholders is itself a signal.

DDC's uniqueness lies in its dual-world presence. It is an Asia-centric food platform rooted in reality, maintaining an approximately 30% annual growth rate over the past few years, with stable operations and ample cash flow; simultaneously, it is a top-50 Bitcoin treasury company in the world.

This "traditional + cutting-edge" combination is not common in the DAT track. Most DAT companies undergo transformation through a shell company or start from scratch, using a narrative to attract capital. DDC is different; it has a truly profitable business at its core. This foundation provides breathing room amidst market fluctuations, allowing it not to rely entirely on financing to sustain growth.

As the DAT track shifts from fervor to rationality, DDC's recent financing appears particularly intriguing. What does it signify? What is the strategic logic behind this company? How does it maintain financial discipline while pursuing aggressive Bitcoin accumulation goals, proving its worth to investors in a market full of skepticism?

With these questions in mind, we interviewed DDC's founder and CEO Zhu Jiaying for an in-depth discussion.

Counter-cyclical Financing

Amid the overall cooling of the DAT track, "financing capability" has become the scarcest resource.

Galaxy Digital's research shows that DAT companies' model heavily relies on the premium of the stock price to net asset value (NAV). As long as the stock price is above NAV, each issuance of $1 of new stock by the company can yield over $1 worth of Bitcoin, setting the capital flywheel in motion.

However, once the stock price falls below NAV, the flywheel halts, and the company faces financing difficulties, forcing it to hit the brakes on expansion.

DDC's financing this time was based on the average trading price over the past 15 days, with an issuance price 33% higher than the market price. Such a premium is quite rare in today's market.

Even rarer, 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 section, Zhu Jiaying elaborates on the key factors for successful financing and how DDC creates value for shareholders through capital efficiency optimization.

Rhythm BlockBeats: Congratulations to DDC on successfully completing a $124 million financing round. The heat of the DAT track has slightly decreased compared to before. Could you please share the key factors 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 think there are several factors.

I believe that finding investors who resonate with DDC's vision and provide long-term support is key. This requires our company to effectively communicate and engage with external stakeholders, enabling them to understand DDC's long-term goals rather than being overly focused on short-term price fluctuations in the DAT track.

Fortunately, as a company, we have built strong investor relationships over the past 12 years, and they are very familiar with me as the founder, our company, and DDC. I believe that this trust relationship takes many years to establish.

The valuation of this round of financing is based on the average trading price of the past 15 days.

Livelihood BlockBeats: This round of financing has attracted top investment institutions such as PAG and Mulana Investment Management. What qualities or strategies of DDC do you think have attracted them the most? Apart from funding, in what areas do you expect support from these institutions?

Ju Jiaying: We are very fortunate to have these top institutions as new shareholders.

I believe that they are bullish on DDC because, as a Bitcoin treasury company, we can more efficiently manage and appreciate assets than just holding Bitcoin. This reflects their trust in the execution ability of our management team — we can generate higher returns from the Bitcoin in the vault than from direct holding.

In addition to financial support, I think it is crucial to establish a strong cooperative relationship with these top investment institutions, and I believe we can learn a lot from them.

Livelihood BlockBeats: Can you please provide specific details of the fund's usage plan? For example, the pace of Bitcoin purchases, custody arrangements, and risk management measures.

Ju 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 arrangement externally. The purchase pace will be dynamically adjusted based on various factors such as market conditions. We may also deploy customized structured products to help optimize Bitcoin purchases at the lowest cost.

Regarding custody, we typically work with multiple institutional-grade custody service providers to securely store Bitcoin, reducing single counterparty risk.

Deep Logic Behind DDC's Strategic Transformation

From a traditional consumer company to a digital asset treasury, DDC's transformation is bold, but behind it lies their sober assessment of the macro environment and monetary system changes.

Over the past five years, the balance sheets of major global central banks have expanded sharply, the growth rate of M2 money supply far exceeds GDP growth, and the purchasing power of fiat currency continues to be diluted. This is the reality that all companies are facing.

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 hedge against fiat currency devaluation in the long term. More importantly, as the 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's role in the traditional financial system.

Galaxy Digital's research points out that one significant reason for the existence of DAT companies is regulatory arbitrage. Global institutional capital of trillions of dollars, including pensions, sovereign wealth funds, and endowments, restricted by regulations, cannot directly hold digital assets but can invest in publicly traded companies.

DAT companies have opened a window of "compliant holding" for this institutional capital. Investors are buying not only Bitcoin on the balance sheet but also the potential of this regulatory arbitrage and capital formation flywheel.

However, this model has also faced a lot of skepticism. Some believe that at the core of DAT is nothing but a narrative game, where the company announces purchases of coins, drives up the stock price, raises funds, buys more coins, and repeats the cycle. More radical voices even liken 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 wants to take.

Rhythm BlockBeats: From a cooking platform to DAT, DDC's transformation is very eye-catching. 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 traded company, we recognize our fiduciary responsibility to shareholders and must continually seek ways to enhance shareholder value.

Understanding the fundamental logic of the monetary system helps us understand why holding Bitcoin in our treasury is necessary—it protects shareholder value from fiat devaluation, and Bitcoin is the tool we use to protect and grow shareholder value.

Considering the significant global liquidity growth over the past five years and the impact on fiat value, this strategic shift is a natural adjustment.

Rhythm BlockBeats: The Bitcoin Treasury Strategy is to some extent a narrative game, where a company attracts market attention by announcing the purchase of Bitcoin, driving up the stock price, and then using the high stock price to raise more funds to 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 from the outside world about the DAT sector.

One of them is the belief that DAT companies rely solely on narrative drive, which is too one-sided a view. Understanding the value of Bitcoin and its role on a company's balance sheet reveals that Bitcoin is transitioning from an appreciating asset to a collateralizable asset class, similar to gold.

This is a macro, long-term trend. Companies that truly understand and believe in this structural change will actively and rapidly accumulate Bitcoin. As the DAT track is still in its early stages and the outside world's understanding is limited, companies will have different development paths, and the market will ultimately distinguish between the superior and the inferior.

Another misunderstanding is likening Bitcoin companies to a Ponzi game.

In reality, this statement is inaccurate. A Ponzi scheme relies on future fund commitments without actual asset backing, whereas DAT companies continuously increase their real Bitcoin holdings through fund acquisition, with the actual value being supported, which is entirely different from the Ponzi model.

Rhythm BlockBeats: Michael Saylor is the godfather of the Bitcoin Treasury Strategy, and his personal charisma and evangelism have attracted a lot of attention to the Strategy. Do you think DDC needs a spiritual leader like Saylor? Are you willing to take on such a role yourself?

Zhu Jiaying: Michael Saylor is very unique, and no one can or should try to imitate him. His influence and stature in the Bitcoin community are solid. I believe that DDC or other Bitcoin treasury companies should not attempt to replicate him. However, each company needs to find its own identity and market expression, perhaps through a well-known figure within the company or a unique brand story and narrative.

The Balance of Capital Strategy

The success of the Strategy largely stems from its aggressive capital approach. By issuing zero-coupon convertible bonds and preferred shares, the company has set up a high-leverage flywheel, where as the price of Bitcoin rises, its returns are magnified.

However, the same structure also carries risks.

Galaxy Digital's research points out that the core vulnerability of the DAT model lies in its reliance on stock price premiums. Once the stock price falls below net asset value, or if the funding window closes, companies relying on PIPE or high leverage will experience a severe drawdown.

DDC currently relies mainly on equity financing, which has slowed down the expansion pace and reduced financial risks. Calculated at the current Bitcoin price, growing from 1,083 coins to 10,000 coins would require approximately $1 billion. This $125 million financing is just the beginning, and next, DDC will need continuous support of more capital.

So, will the company follow Strategy's debt financing model? How to find a balance between rapid accumulation and risk control? In this section, Zhu Jiaying elaborates on DDC's diversified financing strategy and the key metrics set by the company to support future financing.

BlockBeats Interview: After completing this round of financing, does the company have a preliminary plan for the next round of financing? DDC currently relies mainly on equity financing, will it consider 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 according to the market environment, including various financing tools in the public market as well as structured and privately negotiated financing schemes.

BlockBeats Interview: In order to support the next round of financing and higher valuation, what key milestones does DDC plan to achieve in the next 12-18 months? Besides Bitcoin holdings, what other core business metrics are you focusing on?

Zhu Jiaying: Our year-end goal is to grow DDC's Bitcoin reserves to 10,000 coins. In the Bitcoin accumulation strategy, our core business metric of focus is to ensure that the dilution effect can create additional value for shareholders. In the long term, we believe Bitcoin is an appreciating asset, so we need to accumulate Bitcoin rapidly and rigorously.

Execution Challenges

From 1,058 coins to 10,000 coins, a nearly tenfold growth 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 to buy and how to buy have become a test. It's not about chasing highs or missing lows, but rather about management's judgment and execution discipline.

The second challenge is money. Based on the current price of Bitcoin of around $110,000, to increase from 1083 coins to 10,000 coins would cost approximately $1 billion. This $124 million financing is only the beginning. DDC will need continuous financing in the future, and in the current situation where many DAT company stocks are trading below net asset value, whether they can continue to raise money from the market is itself a question mark.

The third challenge is risk. The drastic fluctuation of Bitcoin will directly impact the company's balance sheet. The key question is whether DDC can hold steady in extreme market downturns without being forced to sell the coins in hand. This is the question that its risk management framework must answer.

In this section, Zhu Jiaying elaborated on DDC's execution strategy and risk control measures, demonstrating its financial discipline as a publicly traded company with a 12-year history.

BlockBeats Legal and Compliance: The company has set a goal to hold 10,000 bitcoins by the end of 2025. What will be the biggest challenge in achieving this goal? How will the company address it?

Zhu Jiaying: The biggest challenge in achieving the goal of holding 10,000 bitcoins is managing the timing of coin purchases in response to macro-environment changes.

We adopt a phased, disciplined, and flexible accumulation strategy, adjusting based on market conditions. We use risk management tools such as hedging and liquidity reserves to mitigate downside risks. The team continuously monitors market dynamics, relies on data-driven decisions to optimize coin purchase timing, and maintains flexibility.

BlockBeats Legal and Compliance: As a publicly traded company, how does DDC balance the huge potential of Bitcoin investment with the financial risks brought about by price volatility? What is the company's risk management framework?

Zhu Jiaying: Bitcoin volatility is a recognized characteristic. The core of our risk management framework is to avoid excessive leverage and prevent being forced to sell bitcoins during bear markets. We regularly conduct internal scenario analysis and stress test the balance sheet. We view Bitcoin accumulation as a long-term strategy, ensuring prudent and disciplined execution.

Dual-Driven Approach

In the DAT track, most companies have transformed through shell companies or built from scratch. Their business models are highly dependent on the rise of Bitcoin prices and the capital market's financing ability. If either of these conditions encounters issues, the company will be in trouble.

The key difference of DDC lies in having a real operational, consistently profitable traditional business as its foundation. This Asian cuisine platform business has maintained a roughly 30% annual growth rate in recent years, providing the company with a stable cash flow.

This dual-drive model theoretically has clear advantages. The traditional business can offer financial cushioning during market downturns, reducing the company's reliance on external financing; while the Bitcoin treasury strategy provides shareholders with a hedge against fiat currency devaluation and the opportunity to capture the long-term appreciation of digital assets.

However, whether true synergies can be generated between these two businesses or if they merely coexist will largely determine whether DDC can truly realize its differentiated value.

In this chapter, Zhu Jiaying elaborates on the development prospects of the traditional business and the company's exploration of integrating blockchain technology with consumer business.

At the same time, she also shares her thoughts on the company's strategic flexibility and advice for individual investors. These responses demonstrate how a manager, when faced with a rapidly changing market environment, balances adherence to a long-term vision with maintaining strategic adaptability.

BlockBeats Interview: How will DDC's existing Asian cuisine platform business evolve? Are there synergies between these two seemingly different businesses?

Zhu Jiaying: In the past few years, our core food business has maintained an approximately 30% annual growth rate.

In the future, we expect the integration of blockchain technology with the core food business to bring about synergies, such as launching a tokenized rewards points system, to enhance customer experience and core business value.

BlockBeats Interview: 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 Interview: 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 advise not to overly focus on short-term stock price fluctuations, to deeply understand the actions of the company's management and long-term goals, and to observe if the execution brings shareholder value.

The field of Bitcoin Treasury-listed companies is young and early in development, and investors need to have long-term patience. Over time, the market will differentiate the development paths of different companies, allowing investors to choose which companies to support based on this.

BlockBeats Interview: What is your ultimate vision for DDC?

Joyce Zhu: To keep the company growing and create long-term, sustainable value for shareholders.

Finding Order in Chaos

Tom Lee's "bubble burst" is essentially a market's rational return to the DAT track.

During the frenzy in the summer of 2025, over 200 listed companies announced plans to purchase Bitcoin. However, how many of these companies truly have execution capability and risk management ability? The market is providing the answer through stock prices. Those companies lacking substantial asset backing and overly reliant on narrative-driven approaches are undergoing a painful correction of their valuations.

However, this correction does not mean the failure of the DAT business model but rather signifies the track entering a survival-of-the-fittest stage. According to Galaxy Digital's research, DAT companies hold 791,662 bitcoins, accounting for 3.98% of the circulating supply. While this proportion may not be large, it is already sufficient to impact the market.

More importantly, with the evolution of global financial infrastructure and changes in the regulatory environment, 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 this trend.

DDC's advantage lies in the strategic depth brought by its dual identity. On one hand, its Asian cuisine platform business provides a stable cash flow and business foundation, allowing it not to rely entirely on the capital market's financing capacity. On the other hand, its Bitcoin Treasury strategy provides shareholders with a tool to hedge against fiat devaluation.

This combination theoretically reduces the risk of a single business model, but whether it can truly generate synergies in practice will require time to verify.

Also needing verification is DDC's execution capability. From 1,083 bitcoins to 10,000 bitcoins, an almost tenfold growth target means the company needs to continue fundraising and purchasing over the next year.

Joyce Zhu has her own understanding of the monetary system and capital markets. She has always emphasized restraint, especially regarding leverage, making DDC's path appear more stable and realistic.

In a market full of uncertainty, the real challenge lies in execution. Whether a company can maintain its pace amidst volatility, and stay on course during expansion, ultimately determines how far it can go. The outcome of DDC's story will depend on its ability to deliver on its promises through future execution, and prove its differentiated value in competition. The market will provide the answer, and time will serve as the judge.