Nasdaq-listed GD Culture Group (GDC) has committed up to $300 million toward Bitcoin (BTC) and the Trump-themed OFFICIAL TRUMP (TRUMP) token. This funding comes through a stock purchase agreement with a British Virgin Islands-based investor, aimed at building a long-term crypto reserve. The company plans to hold these digital assets as part of its treasury operations, signaling strong confidence in the future of cryptocurrencies.
Why This Matters
GDC’s move to add Bitcoin and TRUMP tokens to its balance sheet highlights its push toward decentralized finance (DeFi) and blockchain adoption, aligning with a broader trend of public companies integrating crypto into their financial strategies. This shift also supports GDC’s digital business focus, particularly through its subsidiary AI Catalysis, which operates in the livestreaming e-commerce space.
Facing Financial Pressure
Despite this crypto push, GDC is currently facing financial challenges. The company reported a $14.1 million net loss for 2024, a slight improvement from the previous year’s $14.3 million loss. In addition, Nasdaq issued a warning stating that GDC failed to meet the required $2.5 million stockholders’ equity. The company now has 45 days to submit a plan to regain compliance or face the risk of delisting.
CEO Sees It as a Strategic Leap
Chairman and CEO Xiaojian Wang said the company’s crypto pivot is intentional and aligned with market shifts. He believes this strategy will boost GDC’s balance sheet and unlock new growth opportunities. “We’re confident this will drive long-term value for our shareholders,” Wang said, emphasizing the company’s belief in blockchain as the future of finance.
Critics Push Back
Not everyone’s convinced. Crypto analyst Eva Lenoir criticized the move, saying Bitcoin isn’t meant to be a “toy for the elites.” She compared the investment to “a warship sailing with paper sails,” questioning the logic of mixing political tokens like TRUMP with serious treasury assets.
Meanwhile, GDC’s $300 million crypto push is one of the boldest moves by a public company in recent months. While it shows faith in crypto’s future, the inclusion of politically tied tokens adds a layer of controversy to an already high-risk play.
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FAQs
GDC focuses on AI digital humans and livestream e-commerce through subsidiaries in the U.S. and China.
Like MicroStrategy and Metaplanet, GDC is adding crypto to its treasury amid rising corporate interest in digital assets.
