Source: Cointelegraph
Original: “Nasdaq-listed company GDC plans to spend $300 million to purchase Bitcoin (BTC) and TRUMP meme coin (Memecoin)”
Nasdaq-listed holding company GD Culture Group (GDC), a business focused on live streaming, e-commerce, and AI-driven digital human technology, plans to raise up to $300 million to establish a cryptocurrency reserve.
According to a statement released on May 12, GDC and its subsidiary AI Catalysis have signed a common stock purchase agreement with a limited liability company registered in the British Virgin Islands, intending to sell common stock worth up to $300 million.
The proceeds from this stock sale will be used to establish the company's cryptocurrency reserve, including the purchase of Bitcoin and Official Trump (TRUMP) tokens.
The company stated in the announcement: "Under this plan, and subject to specific restrictions, GDC intends to use the majority of the proceeds from the stock sale under this financing tool to purchase and hold cryptocurrency assets long-term, integrating them into core treasury operations."
GDC described this strategic initiative as an important action aligned with the broader trend of "decentralized transformation."
GDC stock price, one-year chart. Source: Nasdaq
Founded in 2016, GDC is currently a micro-cap company with a market value of $34 million, according to Nasdaq data.
GDC Chairman and CEO Wang Xiaojian stated that the plan leverages the company's strengths in digital technology to prepare for blockchain-driven industrial transformation.
Wang Xiaojian said: "GDC's strategy of treating cryptocurrency assets as treasury reserves is well-considered, reflecting not only the current industry development trends but also our unique advantages in digital technology and the live e-commerce ecosystem."
It is noteworthy that this stock issuance announcement was made more than a month after the company received a non-compliance warning from Nasdaq. The warning indicated that the company's reported shareholder equity was only $2,643, far below the minimum regulatory requirement of $2.5 million.
The company must submit a compliance plan to Nasdaq by May 4. If the plan is approved, GDC will have up to 180 days (calculated from the date of notification) to meet the listing requirements.
This Nevada-based company has joined a small but growing group of publicly listed companies that are actively allocating part of their balance sheets to cryptocurrency assets.
GDC's announcement coincides with a high-profile event for the Trump token project. The 25 largest holders of TRUMP tokens will attend a private dinner at the White House on May 22.
However, the TRUMP meme coin project stated in a May 12 announcement on the X platform that it has stopped considering adding additional participants for the dinner and has notified attendees to begin the background check process.
According to data provided by the project leaderboard, as of May 12, the top 220 wallets collectively held over 13.7 million tokens, valued at approximately $174 million at the time of publication.
As of May 12, the top 10 holders of TRUMP meme coin. Source: TRUMP meme coin project
Some U.S. lawmakers have criticized the dinner. Reportedly, Republican Senator Cynthia Lummis expressed concern that the U.S. President's practice of providing special access opportunities to those willing to pay raises "deep concerns" for her.
Cryptocurrency regulatory experts are also worried that the Trump family's actions in the cryptocurrency space could trigger stricter regulatory scrutiny from the U.S. Securities and Exchange Commission.
Related: Dubai government partners with Crypto.com to launch cryptocurrency payment channel for government services.
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