GD Culture Group (GDC), a Nasdaq-listed holding company focused on livestreaming, e-commerce and artificial intelligence-powered digital human technology, plans to raise up to $300 million for a cryptocurrency treasury reserve.<\/p>\n
In a May 12 statement, GDC and its subsidiary, AI Catalysis, announced entering into a common stock purchase agreement with a British Virgin Islands limited liability company to sell up to $300 million of its common stock.<\/p>\n
The proceeds from the stock sale will be used to fund the firm\u2019s crypto treasury, which will include purchases of Bitcoin (BTC<\/a>) and the Official Trump (TRUMP)<\/a> token.<\/p>\n \u201cUnder this initiative, and subject to certain limitations, GDC intends to allocate a significant portion of the proceeds from any share sales under the facility to the acquisition, long-term holding, and integration of crypto assets into its core treasury operations,\u201d the company said in the announcement.\u00a0<\/p>\n GDC described the strategy as a move to align with the broader \u201cdecentralization transformation.\u201d<\/p>\n GDC stock price, 1-year chart. Source: Nasdaq<\/em><\/p>\n Founded in 2016, GDC is a micro-cap company with a current $34 million market capitalization, according<\/a> to Nasdaq data.<\/p>\n Related: <\/strong><\/em>Multi-wallet usage up 16%, but AI may address crypto fragmentation gap<\/strong><\/em><\/a><\/p>\n GDC\u2019s chairman and CEO, Xiaojian Wang, said the initiative builds on the company\u2019s strengths in digital technologies and positions it for a blockchain-powered industrial shift.<\/p>\n \u201cGDC\u2019s 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 and the livestreaming e-commerce ecosystem,\u201d Wang said.<\/p>\n The stock offering was announced over a month after the firm received a noncompliance warning<\/a> from Nasdaq related to its stockholders\u2019 equity. The notice indicated that the firm reported stockholders\u2019 equity of only $2,643, well below the minimum requirement of $2.5 million.<\/p>\n The firm was given until May 4 to submit a plan to comply with the listing requirements. If accepted by Nasdaq, the compliance plan will allow up to 180 days from the notification period to comply with the requirements.<\/p>\n The Nevada-based company joins a small but growing group of public firms that are allocating part of their balance sheets to crypto assets. <\/p>\n Related: <\/strong><\/em>Crypto speculation dominates $600B cross-border payments: BIS report<\/strong><\/em><\/a><\/p>\n GDC\u2019s announcement coincides with an upcoming high-profile event tied to the Trump token project. The 25 largest holders of TRUMP tokens are set to attend a private dinner at the White House on May 22.<\/p>\n However, the TRUMP memecoin project said<\/a> in a May 12 X post that it has stopped considering additional purchases for the dinner and that the attendees had been notified to apply for background checks.<\/p>\n According to data provided on the project\u2019s leaderboard, the top 220 wallets held more than 13.7 million tokens as of May 12, worth about $174 million at the time of publication.<\/p>\n Top 10 TRUMP memecoin holders as of May 12. Source: TRUMP memecoin project<\/em><\/p>\n Some US lawmakers have<\/a> criticized the dinner. Republican Senator Cynthia Lummis reportedly said that the idea of the US president offering exclusive access for people willing to pay \u201cgives [her] pause.\u201d<\/p>\n Crypto regulation experts also fear that the Trump family\u2019s crypto endeavors<\/a> may trigger more regulatory scrutiny by the US Securities and Exchange Commission, as politically affiliated memecoins introduce a new challenge for crypto legislation.<\/p>\nTrump token dinner planned for top holders<\/h2>\n