The GD Culture Group (GDC), a holding company listed by Nasdaq, which focuses on live streaming, e-commerce and artificial intelligence-digital human technology, plans to gather as much as $ 300 million for a rate reserve for cryptocurrency.
In a press release of May 12, the GDC and its subsidiary AI Catalysis announced an everyday share access contract with a British Virgin Islands Liability Liability Company to be able to sell as much as $ 300 million of its regular shares.
The proceeds from stock sales are used to finance the corporate's crypto treasury, which incorporates Bitcoin (BTC) and the official Trump (Trump) token.
“According to this initiative and subject to certain restrictions, GDC intends to assign a big a part of the proceeds from any share sales as a part of the power to the power, long-term participation and the combination of crypto assets into its core businesses,” said the corporate within the announcement.
GDC described the strategy as a step to align yourself with the broader “decentralization transformation”.
GDC share price, 1-year diagram. Source: Nasdaq
GDC was founded in 2016 and, in line with Nasdaq data, is a micro cap company with a current market capitalization of $ 34 million.
The chairman and CEO of GDC, Xiaojian Wang, said the initiative builds on the strengths of the corporate in digital technologies and position them for a blockchain provider industry shift.
“The introduction of crypto assets by GDC as a treasury reserve Holdings is a conscious strategy that reflects each the present industry trends and our unique strengths in digital technologies and the e-commerce ecosystem of live streaming,” said Wang.
The share offer was announced for a month after the corporate received non -compliance with Nasdaq in reference to the equity of its shareholders. The announcement showed that the corporate reported equity of only $ 2,643, which is well below the minimum requirement of USD 2.5 million.
The company was given until May 4 to submit a plan to satisfy the listing requirements. If the compliance plan is accepted by NASDAQ, it enables compliance with the necessities as much as 180 days from the notification period.
The company based in Nevada occurs a small but growing group of public firms that assign a part of their balance sheets for crypto assets.
Trump token evening dinner for top owners planned
The announcement of GDC coincides with an upcoming top-class event connected to the Trump token project. The 25 largest owners of Trump token will participate in a personal dinner within the White House on May twenty second.
However, the Trump Memecoin project said in a post on May 12 that it stopped considering additional purchases for dinner, and that the participants had been notified to use for background exams.
According to data made available within the rating of the project, the TOP 220 token pockets belonged to greater than 13.7 million tokens from May twelfth, which was value around 174 million US dollars on the time of publication value around 174 million.
Some US legislators criticized dinner. The Republican Senator Cynthia Lummis supposedly said that the concept that the US President offers exclusive access to people who find themselves willing to pay [her] Pause.”
Experts in crypto regulation also fear that the crypto efforts of the Trump family could trigger a more regulatory examination by the US securities and the Exchange Commission, since politically connected memoins present a brand new challenge for crypto laws.
