U.S. research firm Benchmark has initiated coverage of DDC Enterprise (NASDAQ: DDC) with a Buy rating and a price target of $3 per share, highlighting the company's ambitious Bitcoin accumulation strategy and its unique AI-driven treasury management system. The rating is based on what Benchmark analyst Mark Palmer describes as a 'clear runway' for DDC to more than double its Bitcoin holdings in 2026.
As of April 21, DDC Enterprise held 2,383 BTC and aims to reach 5,000 BTC by year-end 2026. If achieved, this would move the company from roughly the 30th-largest public Bitcoin holder closer to the top 20, according to The Block's data. Benchmark's report emphasizes that DDC stands out among the growing number of corporate Bitcoin treasuries due to its established roots as a global Asian food platform, which includes brands like DayDayCook, Nona Lim, and Yai's Thai. This operational business provides stable, recurring revenue and contributed to the company's $39.2 million in revenue for fiscal year 2025, up 4.6% year-over-year, and its first full year of positive adjusted EBITDA.
A key highlight in Benchmark's analysis is DDC's launch of an AI-based operating system for managing its Bitcoin treasury. 'Many companies now hold Bitcoin on their balance sheets, but few have built dedicated infrastructure around how these positions are managed,' DDC CEO Norma Chu said in a recent release. The system aggregates data to guide capital allocation decisions, aiming to improve the quality, consistency, and speed of treasury analysis within defined governance parameters. This technological edge could provide DDC with a competitive advantage in optimizing its accumulation and treasury management processes.
Benchmark sees a disconnect between DDC's share price and its underlying asset value. DDC is currently trading at a modified net asset value (mNAV) of about 0.45, while its net asset value per diluted share stands at $3.61, more than double its current share price of $1.65. The $3 price target reflects a valuation that accounts for both the existing Bitcoin holdings and the potential for future accumulation. The company's accumulation strategy, which has leaned on equity-linked deals and other purchases, allows it to scale holdings while preserving 'balance sheet flexibility,' according to Palmer.
