GD Culture Group Limited, a microcap corporation, has unveiled its intentions to raise as much as $300 million through a stock offering aimed at acquiring Bitcoin and Trump Coin ($TRUMP). This initiative unfolds despite potential risks of delisting from Nasdaq due to financial deficiencies.
The company disclosed on Monday that it has entered a purchase agreement with an investor from the British Virgin Islands to bolster its cryptocurrency treasury initiative.
“This is a deliberate strategy that reflects both current industry trends and our unique strengths,” commented Xiaojian Wang, Chairman and CEO of GD Culture, in the firm’s announcement.
GD Culture Joins Strategy and Metaplanet in Adding Bitcoin to Treasury
GD Culture’s move mirrors actions taken by companies such as Strategy and Metaplanet, which have introduced Bitcoin into their treasuries in recent months.
However, the company’s bold transition into the crypto realm arrives amid mounting financial pressures.
In April, Nasdaq issued a warning to GD Culture for falling short of the minimum $2.5 million stockholders’ equity requirement, with the firm reporting equity of merely $2,643.
GD Culture has until May 4 to present a compliance plan to Nasdaq, which may provide a grace period of up to 180 days for the company to rectify its position while it continues trading under the ticker GDC.
With a market capitalization estimated at $28 million and reported net losses of $14 million in 2024, concerns are rising regarding possible shareholder dilution and the practicality of undertaking such a significant crypto acquisition.
JUST IN: Nasdaq listed GD Culture Group to sell up to $300 million shares to buy #Bitcoin and crypto. pic.twitter.com/DW3rnLhy2n
— Bitcoin Magazine (@BitcoinMagazine) May 13, 2025
Over the years, GD Culture has undergone several transformations.
Formerly identified as Code Chain New Continent Limited and TMSR Holding Company Limited, the firm now operates through two subsidiaries: AI Catalysis in the United States and Shanghai Xianzhui Technology in China.
Its prior business endeavors have encompassed coal processing and iron ore trading.
As of the time of reporting, Bitcoin is trading around $102,500, while Trump Coin is priced at $12.60, experiencing a 9% decline over the last 24 hours.
GD Culture’s stock settled at $2.51 on Monday, following a brief peak at $8.18 after the announcement, according to Nasdaq records.
Public Companies Ramp Up Bitcoin Exposure
Publicly traded companies are increasingly enhancing their Bitcoin holdings, with Michael Saylor’s Strategy leading this trend.
The Virginia-based firm recently stated its plans to double its capital-raising efforts to $84 billion to acquire additional Bitcoin.
This strategy involves selling an extra $21 billion in common stock, on top of the earlier program authorized in October.
Besides equity sales, Strategy is also increasing its debt issuance target from $21 billion to $42 billion, holding $14.6 billion still available under the current authorization.
Additionally, Metaplanet on Monday expanded its Bitcoin treasury, securing an extra 1,241 BTC at an approximate cost of 18.4 billion yen ($126 million).
This latest acquisition raises the company’s total Bitcoin holdings to 6,796 BTC, currently valued at over $706 million.
This growing trend highlights a wider institutional interest in Bitcoin.
During the first quarter of the year, publicly listed companies collectively boosted their Bitcoin holdings by 16.1%, reflecting ongoing confidence in the asset amid persistent market fluctuations.
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