Key Takeaways:
- GD Culture Group commits up to $300 million to purchase Bitcoin and Trump Coin as part of its new crypto reserve strategy.
- The company faces a Nasdaq delisting warning after disclosing only $2,643 in equity—far below the required $2.5 million.
- Despite financial red flags, GDC joins a growing trend of public firms integrating crypto into corporate treasuries.
GD Culture Group Limited (Nasdaq: GDC) has announced a bold $300 million crypto asset plan, aiming to build a reserve comprising Bitcoin and the controversial Trump Coin. The move signals a dramatic shift for the small-cap company, which is currently under pressure from a Nasdaq delisting threat due to failing to meet minimum equity requirements.
Read More: $1.34B Bitcoin Buy Sends Shockwaves as Strategy Nears $40B BTC Holdings—Is a Pullback Coming?
GDC Unveils $300M Crypto Treasury Strategy
GD Culture Group, through its subsidiary AI Catalysis Corp., signed a stock purchase agreement with a British Virgin Islands investor to raise up to $300 million. The funds will be directed toward building a long-term reserve of digital assets, specifically Bitcoin and Trump Coin. According to the company’s official press release, this strategy reflects “confidence in the ongoing decentralization transformation.”
Xiaojian Wang, Chairman and CEO of GD Culture, stated that the move is a “deliberate strategy” rooted in the company’s strengths in AI-driven livestreaming and digital technology. The company believes integrating high-performance digital assets into its treasury will enhance its financial position while aligning with the broader growth of decentralized finance (DeFi).
The decision puts GDC in the same camp as other publicly listed companies such as MicroStrategy and Japan’s Metaplanet, which have increasingly embraced Bitcoin as a strategic reserve. However, GDC’s financial background and the inclusion of Trump Coin—a politically themed memecoin with high volatility—make this case notably more speculative.
Read More: Trump Administration Seeks to Build Largest U.S. Bitcoin Reserve
Nasdaq Compliance Issues Raise Red Flags
Just weeks before the crypto announcement, GD Culture received a Nasdaq delisting notice. The company reported stockholders’ equity of only $2,643, well below the $2.5 million minimum required for continued listing. Nasdaq granted GDC until May 4 to submit a compliance plan, with a potential extension of up to 180 days to meet the standards.
The market responded swiftly. GDC stock spiked to $8.18 on Monday morning following the news of the crypto reserve, only to crash back down to $2.51 by the close of trading—a nearly 70% drop within hours.
With a market cap of $28 million and 2024 net losses of $14 million, the company’s announcement raised concerns among analysts about execution risk and shareholder dilution. The plan to raise funds through stock sales could result in significant dilution, depending on how quickly and at what valuation shares are issued.
A Risky Bet on Trump Coin and Bitcoin
High Volatility, High Ambition
While the inclusion of Bitcoin aligns with institutional trends, the addition of Trump Coin (TRUMP)—a politically charged memecoin—adds a layer of unpredictability. Compared to blue-chip cryptocurrencies, Trump Coin is famous for quick price fluctuations and poor liquidity. When the news was made, Trump Coin was trading at $12.60, down 9% over 24 hours, while Bitcoin sat about $102,500.
Experts argue that although mixing Bitcoin with high-volatility altcoins like Trump Coin increases vulnerability to abrupt market downturns, stockpiling crypto reserves can improve balance sheets in bull