How might this move influence DDC's valuation multiples (e.g., P/E, EV/EBITDA) given the crypto exposure?

Impact on valuation multiples

The addition of 120 BTC (≈ USD 11.8 bn at the disclosed average cost) lifts DDC’s total crypto treasury to roughly USD 48 bn. Because the Bitcoin balance is recorded as a non‑operating, market‑to‑market asset, it does not flow through the income statement until a sale is realized. Consequently, traditional earnings‑based multiples such as P/E and EV/EBITDA become “compressed” in the short‑run: the market will still price the equity on the basis of current earnings, while the balance‑sheet value has jumped dramatically. Analysts will therefore apply a price‑to‑net‑asset or price‑to‑adjusted‑EBITDA discount to reflect the crypto cushion, often resulting in a lower P/E (or even a negative one if the crypto asset is large enough to offset modest earnings) and a higher EV/EBITDA because EV now includes a sizable, volatile asset that is not generating cash flow.

Trading implications

1. Upside scenario: If BTC rallies, the unrealized gain on the treasury will boost DDC’s net‑asset value and could be monetised through future sales or collateral‑based financing. In that case, the market may re‑price the stock at a premium to its adjusted EV/EBITDA, tightening the multiple toward historical peers. A long‑position with a modest stop (e.g., 8‑10 % below the current price) captures the upside while limiting exposure to a potential crypto‑drawdown.
   
2. Downside scenario: A sharp BTC correction would erode the balance‑sheet buffer, prompting analysts to widen the discount to earnings and potentially push the P/E lower (or into negative‑earnings territory) and the EV/EBITDA higher. In this environment, a short‑bias or a protective hedge (e.g., buying put options on BTC or a correlated crypto‑index) can mitigate the risk of a multiple expansion that is not supported by operating performance.
   

Actionable take‑away: Treat DDC’s valuation as a hybrid of a traditional telecom/technology stock and a crypto‑exposed balance‑sheet. Monitor BTC price movements and any disclosed intent to liquidate or use the holdings as collateral; adjust the earnings‑multiple model accordingly. A range‑bound strategy—buy near the lower end of the current P/E/EV‑EBITDA band and sell near the upper end—captures the “crypto‑asset premium” while staying protected from the inherent volatility of Bitcoin.