GD Culture Group (GDC), a publicly traded holding firm on Nasdaq that emphasizes livestreaming, e-commerce, and digital human technology powered by artificial intelligence, intends to raise as much as $300 million for a cryptocurrency treasury reserve.
In a declaration made on May 12, GDC and its subsidiary, AI Catalysis, revealed that they had engaged in a common stock purchase agreement with a limited liability entity from the British Virgin Islands to offload up to $300 million of its common shares.
The funds acquired from the stock offering will be allocated to bolster the company’s crypto treasury, which will encompass acquisitions of Bitcoin (BTC) and the Official Trump (TRUMP) token.
“Pursuant to this initiative, and subject to specific constraints, GDC plans to channel a substantial part of the revenue from any stock sales under this arrangement towards the procurement, long-term retention, and integration of crypto assets into its main treasury functions,” the firm stated in its announcement.
GDC characterized the plan as an alignment with the expansive “decentralization transformation.”
Established in 2016, GDC is a micro-cap entity with a current market capitalization of $34 million, according to Nasdaq data.
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Xiaojian Wang, GDC’s chairperson and CEO, remarked that this initiative capitalizes on the company’s strengths in digital technologies and prepares it for a blockchain-driven industrial transition.
“GDC’s integration of crypto assets as treasury reserve holdings is a strategic move that symbolizes current industry tendencies and our distinctive capabilities in digital technologies and the livestreaming e-commerce ecosystem,” Wang explained.
The stock offering was disclosed over a month following the firm receiving a noncompliance notice from Nasdaq concerning its stockholders’ equity. The notification highlighted that the firm disclosed stockholders’ equity of a mere $2,643, significantly below the required minimum of $2.5 million.
The company was given until May 4 to present a plan for adherence to the listing standards. If approved by Nasdaq, the compliance strategy will grant up to 180 days from the notification period to meet the criteria.
This Nevada-based firm joins a small yet expanding number of public companies that are designating portions of their balance sheets to crypto assets.
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Trump token dinner planned for premier holders
GDC’s announcement aligns with an imminent high-profile event linked to the Trump token initiative. The 25 most significant holders of TRUMP tokens are set to partake in a private dinner at the White House on May 22.
Nonetheless, the TRUMP memecoin project announced in a May 12 X post that it has ceased considering further purchases for the dinner and that attendees have been prompted to undergo background checks.
As per information provided on the project’s leaderboard, the top 220 wallets contained over 13.7 million tokens as of May 12, valued at approximately $174 million at the time of publication.
Some US legislators have expressed disapproval of the dinner. Republican Senator Cynthia Lummis allegedly stated that the notion of the US president providing exclusive access to those willing to pay “gives [her] pause.”
Experts in crypto regulation also worry that the crypto ventures of the Trump family may provoke increased regulatory examination by the US Securities and Exchange Commission, as politically affiliated memecoins present a new challenge for cryptocurrency legislation.
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