Nasdaq-listed GD Culture Group (GDC) announced on May 12, 2025, that it has secured a $300 million funding commitment to build a significant crypto reserve. An accredited investor from the British Virgin Islands will purchase the common stock, with the proceeds designated for acquiring Bitcoin and the politically themed OFFICIAL TRUMP token.
The company has not specified exactly how it will allocate the $300 million between Bitcoin and the TRUMP token, only stating that it intends to make these cryptocurrencies core treasury assets.
The timing of this crypto pivot is particularly notable as GDC has faced financial difficulties. The company reported a $14.1 million net loss for 2024 and received a warning from Nasdaq last month for failing to maintain the minimum required stockholders’ equity of $2.5 million. The exchange has given GDC a 45-day deadline to submit a compliance plan or face potential delisting.
Growing Crypto Reserves Trend
The announcement follows Donald Trump’s public calls for increasing the nation’s Bitcoin and crypto reserves. This has sparked increased interest in cryptocurrency investments among corporations. For instance, other Nasdaq-listed companies, like Freight Technologies, have similarly moved to purchase Trump-themed tokens recently.
GDC, despite its subsidiary AI Catalysis Corp., operates in the AI-driven digital human technology space and runs live streaming e-commerce businesses on platforms such as TikTok. The crypto treasury strategy aims to complement its existing digital focus.
As GD Culture Group implements its crypto treasury strategy in the coming months, this unconventional approach could assist the company in addressing its financial challenges or add further volatility to an already precarious situation.
While the stock purchase agreement may dilute existing shareholders’ equity, the company maintains that the strategy will “drive long-term value creation for our shareholders as decentralized finance continues to evolve.”
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