GD Culture Group (GDC), a NASDAQ-listed holding company focusing on live streaming, e-commerce and artificial intelligence-powered digital human technologies, is set to raise up to $300 million for the Cryptocurrency Treasury Reserve.
In a statement on May 12th, GDC and its subsidiary AI Catalyst announced that it will enter into a common stock purchase agreement with the UK Virgin Islands Limited Liability Company.
Proceeds from stock sales are used to fund the company’s Cryptocurrency Department, including the purchase of Bitcoin (BTC) and official Trump (Trump) tokens.
“Under this initiative, GDC, subject to certain restrictions, will allocate a significant portion of its revenue from stock sales under the facility to the acquisition, long-term holdings and consolidation of crypto assets into the Treasury’s financial operations,” the company said in its announcement.
The GDC described this strategy as a move consistent with the broader “decentralization transformation.”
GDC, founded in 2016, is a microcap company with a market capitalization of $34 million, according to data from NASDAQ.
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GDC Chairman and CEO Xiaojian Wang said the initiative is based on the strengths of the digital technology company and will position it for a blockchain-driven industrial shift.
“The adoption of crypto assets as a Treasury Reserve is a deliberate strategy that reflects both current industry trends and the unique strengths of digital technology and the live streaming ecommerce ecosystem,” Wang said.
The stock offering came out a month after the company received a non-compliance warning from NASDAQ related to shareholder fairness. The notice showed that the company reported that its shareholders’ shares were only $2,643.
The company was given until May 4th to submit plans to comply with the listing requirements. If accepted by NASDAQ, the compliance plan is permitted for up to 180 days from the notice period to comply with the requirements.
The Nevada-based company is part of a group of small, growing public companies that allocate part of its balance sheets to crypto assets.
Related: Crypto speculation controls $600 million cross-border payments: BIS report
Playing cards token dinner scheduled for the top holder
The GDC announcement coincides with upcoming high-profile events related to the Trump Token Project. The 25 biggest owners of the Trump Token will be taking part in a private dinner at the White House on May 22nd.
However, the Trump Memocoin Project said on the May 12th X-Post that it had stopped considering purchasing additional dinners, and participants were notified to apply for background checks.
According to data provided to the project’s leaderboard, the top 220 wallets hold more than 13.7 million tokens as of May 12, worth around $174 million at the time of publication.
Some US lawmakers have criticized dinner. Republican Sen. Cynthia Ramis said the idea of the US president would provide exclusive access to those willing to pay “(her) pause.”
Cryptocurrency experts also fear that Trump’s crypto efforts could trigger more regulatory scrutiny by the U.S. Securities and Exchange Commission, as politically affiliated Memecoin introduces new challenges in cryptographic law.
https://www.youtube.com/watch?v=oqemr3g8dai
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