Nasdaq-listed GD Culture Group has just signed a stock purchase agreement with a British Virgin Islands-based investor, ready to sell up to a cool $300 million in shares. Why, you ask? Well, the company’s got its eyes on the crypto prize, aiming to snag Bitcoin and even the ever-popular Trump memecoin for its treasury strategy.
On Monday, GD Culture, a digital human tech and e-commerce player, made it clear that a “significant portion” of the proceeds from these share sales will be plowed into buying and holding crypto assets. Not just any crypto assets, mind you, but Bitcoin (BTC) and Official Trump (TRUMP) memecoin. What’s the plan? To integrate these shiny new assets into their operations and bulk up their balance sheet. Nice.
Strategic Move or Just FOMO? GD Culture's Crypto Plans Explained
But here’s the kicker: while the company’s all in on this crypto treasury strategy, it’s being a little coy about how much Bitcoin and TRUMP it plans to buy. Maybe that’s just part of the mystery. Either way, GD Culture seems pretty confident that it’s making a move that mirrors both the latest trends and its strengths in digital tech and live-streaming e-commerce.
Xiaojian Wang, the chairman and CEO, didn’t mince words in the announcement:
“Our adoption of crypto assets as treasury reserve holdings is a deliberate strategy that reflects both current industry trends and our unique strengths.”
Translation: They’re not just jumping on the bandwagon; they’re leading the charge.
Financial Struggles and Crypto Gambit: Can GD Culture Turn Things Around?
For those who aren’t familiar, GD Culture is a Nevada-based company running two subsidiaries: AI Catalysis and Shanghai Xianzhui Technology Co., Ltd. in China. Their core business? Crafting lifelike digital humans with AI tech and running live-streaming e-commerce operations on platforms like TikTok.
Now, for the reality check: the company posted a net loss of $14.1 million in 2024, just a slight improvement from the $14.3 million loss the year before. And, it’s not all smooth sailing; GD Culture also received a warning from Nasdaq last month about not meeting the minimum stockholders’ equity threshold of $2.5 million, putting them on notice to fix things in 45 days.
But here’s where things get interesting. GD Culture’s crypto move comes just as U.S. President Donald Trump has been pushing for national Bitcoin and crypto reserves, prompting companies to pile into the crypto world. Take Freight Technologies, for example, which is using a $20 million financing agreement to buy Trump memecoin. And Michael Saylor’s Strategy, which leads the pack as the biggest corporate holder of Bitcoin, just announced it scooped up 13,390 BTC for around $1.34 billion. Not to be outdone, Japan’s Metaplanet joined the party by buying 1,241 BTC, topping El Salvador’s bitcoin stash.
Meanwhile, Bitcoin is currently sitting at $102,267, down 1.7% in the last 24 hours, and Official Trump memecoin took a 10% dive to $12.48. Not exactly a smooth ride, but hey, that’s crypto for you.
HODL Team
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