DDC, a Hong Kong food company, just bought 21 BTC ($2.28M), announced big plans (wants 5,000 BTC in three years), and the market nuked their stock (down 14.5% in a day). Compare that to MicroStrategy, which has gone full Bitcoin company with 580250 BTC and seen their shares run circles around the S&P500, and DigiAsia, a fintech out of Asia, which got an 80-130% stock pop on similar news.
Why? It seems that the market now sees through BTC as PR. If you’re a fintech or tech company, and you announce a credible, strategic BTC plan, market says “OK, this fits". If you’re a food company burning cash and using shareholders to get Bitcoin, market says nope. Markets just aren’t rewarding FOMO-driven, non-core moves. There’s now a credibility discount for companies outside tech/finance. Old-economy companies (food, cars, retail) are expected to have a real business, not just add Bitcoin and hope for magic. They get punished for that, for bad timing (like DDC buying near ATH), and for not integrating BTC with what they actually do.
Also, what’s up with the region bias? HK and China are trying to be crypto hubs, but if you’re listed in the US and have China ops, market still sees regulatory risk. Japanese companies like Metaplanet? Loved. US fintechs? Rewarded. Everyone else: “try again".
DDC purchase of Bitcoin just seems strange. The market views them as a gimmicks or FOMO action as they are a food company not a finance or digital company. Buying close to the peak aggravates it. Like DigiAsia MicroStrategy had a defined Bitcoin approach that fit their goal. Investors value that since it comes out as strategic and planned.Why? It seems that the market now sees through BTC as PR. If you’re a fintech or tech company, and you announce a credible, strategic BTC plan, market says “OK, this fits". If you’re a food company burning cash and using shareholders to get Bitcoin, market says nope. Markets just aren’t rewarding FOMO-driven, non-core moves. There’s now a credibility discount for companies outside tech/finance. Old-economy companies (food, cars, retail) are expected to have a real business, not just add Bitcoin and hope for magic. They get punished for that, for bad timing (like DDC buying near ATH), and for not integrating BTC with what they actually do.
Also, what’s up with the region bias? HK and China are trying to be crypto hubs, but if you’re listed in the US and have China ops, market still sees regulatory risk. Japanese companies like Metaplanet? Loved. US fintechs? Rewarded. Everyone else: “try again".
But it seems desperate when a business like DDC unexpectedly leaps in. Real as well is regional bias. Better laws and more consistent crypto rules help businesses in Japan or the US seem to be safer. There is still mistrust even if Hong Kong wants to be a cryptocurrency hotspot. It's about who you are and how best it matches your company not only about acquiring BTC.