GD Tradition Group (GDC), a Nasdaq-listed holding firm centered on livestreaming, e-commerce and synthetic intelligence-powered digital human expertise, plans to lift as much as $300 million for a cryptocurrency treasury reserve.
In a Might 12 assertion, GDC and its subsidiary, AI Catalysis, introduced getting into into a standard inventory buy settlement with a British Virgin Islands restricted legal responsibility firm to promote as much as $300 million of its frequent inventory.
The proceeds from the inventory sale shall be used to fund the agency’s crypto treasury, which can embrace purchases of Bitcoin (BTC) and the Official Trump (TRUMP) token.
“Below this initiative, and topic to sure limitations, GDC intends to allocate a good portion of the proceeds from any share gross sales beneath the ability to the acquisition, long-term holding, and integration of crypto belongings into its core treasury operations,” the corporate mentioned within the announcement.
GDC described the technique as a transfer to align with the broader “decentralization transformation.”
Based in 2016, GDC is a micro-cap firm with a present $34 million market capitalization, according to Nasdaq information.
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GDC’s chairman and CEO, Xiaojian Wang, mentioned the initiative builds on the corporate’s strengths in digital applied sciences and positions it for a blockchain-powered industrial shift.
“GDC’s adoption of crypto belongings as treasury reserve holdings is a deliberate technique that displays each present business developments and our distinctive strengths in digital applied sciences and the livestreaming e-commerce ecosystem,” Wang mentioned.
The inventory providing was introduced over a month after the agency acquired a noncompliance warning from Nasdaq associated to its stockholders’ fairness. The discover indicated that the agency reported stockholders’ fairness of solely $2,643, properly beneath the minimal requirement of $2.5 million.
The agency was given till Might 4 to submit a plan to adjust to the itemizing necessities. If accepted by Nasdaq, the compliance plan will enable as much as 180 days from the notification interval to adjust to the necessities.
The Nevada-based firm joins a small however rising group of public corporations which are allocating a part of their steadiness sheets to crypto belongings.
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Trump token dinner deliberate for high holders
GDC’s announcement coincides with an upcoming high-profile occasion tied to the Trump token undertaking. The 25 largest holders of TRUMP tokens are set to attend a non-public dinner on the White Home on Might 22.
Nonetheless, the TRUMP memecoin undertaking said in a Might 12 X submit that it has stopped contemplating further purchases for the dinner and that the attendees had been notified to use for background checks.
In response to information offered on the undertaking’s leaderboard, the highest 220 wallets held greater than 13.7 million tokens as of Might 12, value about $174 million on the time of publication.
Some US lawmakers have criticized the dinner. Republican Senator Cynthia Lummis reportedly mentioned that the thought of the US president providing unique entry for individuals prepared to pay “provides [her] pause.”
Crypto regulation specialists additionally worry that the Trump family’s crypto endeavors could set off extra regulatory scrutiny by the US Securities and Trade Fee, as politically affiliated memecoins introduce a brand new problem for crypto laws.
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