GD Culture Group Invests $300M in Bitcoin, Trump Coin Amid Nasdaq Delisting Warning

GD Culture Group Limited has announced a significant investment of up to $300 million into Bitcoin and Trump Coin as part of its new crypto reserve strategy. This move comes amidst a Nasdaq delisting warning, as the company disclosed stockholders’ equity of only $2,643, far below the required $2.5 million. The company, through its subsidiary AI Catalysis Corp., signed a stock purchase agreement with a British Virgin Islands investor to raise the funds. The strategy is seen as a deliberate move to leverage the company’s strengths in AI-driven livestreaming and digital technology, aiming to enhance its financial position and align with the growth of decentralized finance (DeFi).

Despite the financial red flags, GD Culture Group is not alone in integrating crypto into corporate treasuries. Other publicly listed companies, such as MicroStrategy and Japan’s Metaplanet, have also embraced Bitcoin as a strategic reserve. However, the inclusion of Trump Coin, a politically themed memecoin known for its high volatility, adds a layer of unpredictability to GDC’s strategy. Experts argue that while stockpiling crypto reserves can improve balance sheets in bullish cycles, the high volatility of Trump Coin increases vulnerability to abrupt market downturns.

The market response to the announcement was swift but short-lived. GDC stock spiked to $8.18 following the news but crashed back down to $2.51 by the close of trading—a nearly 70% drop within hours. Analysts have raised concerns about execution risk and shareholder dilution, as the plan to raise funds through stock sales could result in significant dilution depending on the valuation and speed of share issuance. The company’s market cap of $28 million and 2024 net losses of $14 million further highlight the financial strain it is under.

GDC’s transition from coal processing to digital content, AI, and now crypto, signals an ongoing identity transformation. The company, once known as Code Chain New Continent Limited and before that TMSR Holding Company, has reinvented itself multiple times in the past five years. Its current core businesses—AI-powered digital humans and livestream e-commerce—have yet to demonstrate consistent profitability. The crypto announcement, while headline-grabbing, is being interpreted by some observers as a last-ditch effort to remain relevant and listed.

Investor sentiment remains mixed. While the news triggered a short-lived price surge driven by crypto enthusiasm, the rapid sell-off suggests that many see the move as financially risky given GDC’s underlying fundamentals. The success of this strategy will depend not just on crypto market trends but also on investor confidence and the company’s ability to deliver a clear, executable plan. As the company prepares its compliance filing for Nasdaq, all eyes will be on whether GDC can turn this high-stakes crypto gamble into a sustainable long-term strategy or whether it will join the growing list of microcaps whose ambitions were bigger than their balance sheets.