GD Culture will invest $300 million in Bitcoin and the meme token TRUMP

The Nasdaq-listed company GD Culture Group has entered into an agreement with an investor from the British Virgin Islands to sell common shares worth up to $300 million.

According to the press release, the firm will allocate funds to support its strategy for managing digital assets, including the purchase of bitcoins and the meme tokens TRUMP.

"Adopting cryptocurrencies as reserve assets for the treasury is a well-considered strategy that reflects both current industry trends and our unique strengths in digital technology and the streaming e-commerce ecosystem," said Xiaojian Wang, Chairman and CEO of GD Culture.

The company registered in Nevada operates primarily through its subsidiaries AI Catalysis and Shanghai Xianzhui Technology. The key business areas are stated as "digital human technologies based on AI and e-commerce through live broadcasts."

As of the end of 2024, GD Culture reported a net loss of $14.1 million compared to $14.3 million the previous year. The company's market capitalization at the time of writing is $30.8 million.

In February, the company announced a stock sale program for up to $10 million.

In April, Culture Group received a notification from Nasdaq regarding the violation of the minimum equity threshold requirement of $2.5 million. The firm was required to submit a plan to regain compliance with the rules to the exchange by May 4. If approved, it will have 180 days to implement it in order to maintain its listing on the platform.

"By adopting a cryptocurrency asset management strategy, the company aims to improve its balance sheet through high-performance scalable digital assets while adapting to the expanding DeFi ecosystem," the press release states.

Let us remind you that venture investor and billionaire Tim Draper believes that companies that have not yet included Bitcoin in their treasury reserves are acting "irresponsibly."