Key Takeaways
- GD Culture Group plans to raise up to $300 million to purchase Bitcoin and TRUMP memecoin.
- The company received a Nasdaq notice for failing to meet the $2.5 million stockholders' equity requirement.
- This follows other corporate acquisitions of Bitcoin, including MicroStrategy's $1.34 billion BTC purchase.
GD Culture Group, a Nasdaq-listed firm focused on digital human technology and livestream e-commerce, announced it will sell up to $300 million in shares to fund a new treasury strategy centered on Bitcoin and the TRUMP memecoin.
Stock purchase agreement details
The company signed a stock purchase agreement with an investor based in the British Virgin Islands.
A “significant portion” of the raised capital will be used to acquire and hold Bitcoin and TRUMP, though no specific allocation was disclosed.
GD Culture said the move is intended to enhance its balance sheet.
CEO’s statement on crypto adoption
CEO Xiaojian Wang said in a statement:
GDC’s adoption of crypto assets as treasury reserve holdings is a deliberate strategy that reflects both current industry trends and our unique strengths in digital technologies.
Financial background & compliance issues
Registered in Nevada, GD Culture operates through its subsidiaries AI Catalysis and Shanghai Xianzhui Technology Co. Ltd.
It reported a $14.1 million net loss in 2024, slightly improved from $14.3 million in 2023.
The company recently received a Nasdaq non-compliance notice after failing to maintain the $2.5 million minimum stockholders’ equity.
Broader context of corporate Bitcoin holdings
This move comes amid a broader push for corporate Bitcoin holdings, with Freight Technologies committing up to $20 million to TRUMP, and MicroStrategy buying 13,390 BTC for $1.34 billion.
Meanwhile, Japan’s Metaplanet now holds 6,796 BTC, surpassing El Salvador.
Current market prices
Bitcoin was trading at $102,267, down 1.7% in 24 hours, while TRUMP dropped 10% to $12.48.
