Microcap firm GD Culture Group Limited has announced plans to raise up to $300 million through a stock offering to fund the purchase of Bitcoin and Trump Coin ($TRUMP), despite facing a potential delisting from the Nasdaq over financial shortcomings.
The company revealed Monday that it had signed a purchase agreement with an investor based in the British Virgin Islands to support its crypto treasury initiative.
“This is a deliberate strategy that reflects both current industry trends and our unique strengths,” said Xiaojian Wang, Chairman and CEO of GD Culture, in the company’s announcement.
GD Culture Joins Strategy and Metaplanet in Adding Bitcoin to Treasury
The firm follows in the footsteps of companies like Strategy and Metaplanet, which have added Bitcoin to their treasuries in recent months.
However, GD Culture’s aggressive pivot into crypto comes amid mounting financial pressure.
In April, Nasdaq issued a warning to the company for failing to meet the minimum $2.5 million stockholders’ equity requirement. GD Culture reported equity of just $2,643.
The company has until May 4 to submit a compliance plan to Nasdaq, which could grant it up to 180 days to regain compliance while continuing to trade under the ticker GDC.
With a market capitalization of $28 million and reported net losses of $14 million in 2024, the announcement raised concerns over potential shareholder dilution and the feasibility of executing such a large-scale crypto acquisition.
GD Culture has undergone multiple reinventions over the years.
Formerly known as Code Chain New Continent Limited and TMSR Holding Company Limited, the firm now operates through two subsidiaries: AI Catalysis in the U.S. and Shanghai Xianzhui Technology in China.
Previous business ventures have included coal processing and iron ore trading.
As of publication, Bitcoin trades near $102,500, while Trump Coin sits at $12.60, down 9% over the past 24 hours.
GD Culture’s stock closed at $2.51 on Monday, after briefly spiking to $8.18 following the announcement, according to Nasdaq data.
Public Companies Ramp Up Bitcoin Exposure
Public companies continue to increase their exposure to Bitcoin, with Michael Saylor’s firm, Strategy, leading the charge.
The Virginia-based company recently announced it would double its capital-raising efforts to $84 billion in order to acquire more Bitcoin.
This includes plans to sell an additional $21 billion in common stock, following the full utilization of a prior program approved in October.
In addition to equity sales, Strategy has also expanded its debt issuance target from $21 billion to $42 billion, with $14.6 billion still available under the current authorization.
On Monday, Metaplanet also expanded its Bitcoin treasury, acquiring an additional 1,241 BTC for approximately 18.4 billion yen ($126 million).
The latest purchase brings the company’s total Bitcoin holdings to 6,796 BTC, currently valued at over $706 million.
This trend reflects a broader institutional interest in Bitcoin.
During the first quarter of the year, publicly listed firms collectively grew their Bitcoin holdings by 16.1%, indicating continued confidence in the asset despite persistent market volatility.
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