GDC commits up to $300M to Bitcoin and Trump-themed tokens, aiming to build a crypto treasury

This funding comes through a stock purchase agreement with a British Virgin Islands-based investor, aimed at building a long-term crypto reserve.

Nasdaq-listed company, GD Culture Group (GDC), is planning to use a stock purchase agreement to secure up to $300 million in funding from a British Virgin Islands-based investor for investing in Bitcoin (BTC) and the Trump-themed token, OFFICIAL TRUMP (TRUMP).

The company will hold these digital assets as part of its treasury operations, aiming to build a long-term crypto reserve. The company's move to add Bitcoin and TRUMP tokens to its balance sheet signals its interest in decentralized finance (DeFi) and blockchain adoption.

This initiative is part of GDC's broader strategy to shift towards digital business, particularly through its subsidiary AI Catalysis, which specializes in livestreaming e-commerce and digital humans technology.

Despite this crypto endeavor, GDC is currently facing financial challenges. The company reported a $14.1 million net loss for 2024, showing a slight improvement compared to the previous year's $14.3 million loss.

However, the company also received a warning from Nasdaq for failing to meet the required $2.5 million stockholders' equity, which could lead to delisting from the exchange. The company now has 45 days to submit a plan to regain compliance or face the risk of being delisted from Nasdaq.

"This investment in cryptocurrencies is a strategic leap that we're taking to adjust to the rapidly changing market landscape," said Chairman and CEO Xiaojian Wang.

"We believe in the future of blockchain and are excited to integrate this technology into our operations to drive optimal performance and efficiency," he concluded.

The company's crypto pivot comes amid broader interest from public companies in adding digital assets to their balance sheets.

Earlier this year, MicroStrategy reportedly sold a portion of its Bitcoin holdings to raise cash and pay down debt, while Metaplanet is planning to invest in metaverse and Web3 projects through its new $500 million fund.