Nasdaq-listed GD Culture Group has entered into an agreement with an investor from the British Virgin Islands to sell common stock worth up to $300 million.
According to a press release, the firm will allocate the funds to support its digital asset management strategy, including the purchase of Bitcoin and the meme token TRUMP.
“The adoption of cryptocurrencies as treasury reserve assets is a thoughtful strategy that reflects both current industry trends and our unique strengths in digital technology and the streaming e-commerce ecosystem,” said GD Culture Chairman and CEO Xiaojian Wang.
Registered in Nevada, the firm primarily operates through its subsidiaries AI Catalysis and Shanghai Xianzhui Technology. The key business areas are “AI-based digital human technologies and e-commerce through live streaming.”
For the year 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 stands at $30.8 million.
In February, the company announced a stock sale program worth up to $10 million.
In April, Culture Group received a notification from Nasdaq regarding non-compliance with the minimum shareholder equity requirement of $2.5 million. The firm was required to submit a compliance plan to the exchange by May 4. If approved, it would have 180 days to implement the plan to maintain its listing on the platform.
“By adopting a crypto asset management strategy, the company aims to enhance its balance sheet with high-performing scalable digital assets while adapting to the expanding DeFi ecosystem,” the press release states.
Venture investor and billionaire Tim Draper believes that companies which have not yet included Bitcoin in their treasury reserves are acting “irresponsibly.”