GD Culture Group Plans $300 Million Bitcoin, TRUMP Token Purchase

A little-known tech company with ties to China has announced plans to allocate up to $300 million to purchase Bitcoin and the Trump-themed memecoin TRUMP. This move, revealed in a May 11 filing with the US Securities and Exchange Commission, has sparked concerns over potential conflicts of interest and regulatory gaps, particularly as it could financially benefit the Trump family while the president considers banning TikTok in the US.

The announcement was made by GD Culture Group, a Nasdaq-listed firm with a minimal public presence. The company, which claims to operate an e-commerce platform via TikTok, has no recorded revenue and only eight employees. According to a recent filing, GD Culture Group intends to use proceeds from a private stock placement to an unnamed entity based in the British Virgin Islands to fund the purchase of Bitcoin and TRUMP.

GD Culture Group's strategy involves raising funds through a two-year “equity line” with a single accredited investor. The company can issue Purchase Notices to the investor, directing them to buy newly issued GDC common shares. The cash from these share sales, up to $300 million, will be used to acquire Bitcoin and TRUMP. The investor is restricted from holding more than 4.99% of the outstanding shares, with an option to increase to 9.99% with 61 days’ notice. The company is also limited to issuing no more than 3,357,407 shares, or 19.99% of the current float, without shareholder approval.

If the transaction proceeds as filed, GD Culture Group's assets could increase from $14 million at the end of 2024 to potentially more than $300 million. This would position the firm as one of the largest holders of the TRUMP token, which has generated over $320 million in fees for entities associated with Donald Trump and his family.

The timing of this move is particularly contentious, as lawmakers in Washington are debating a proposed ban on TikTok due to national security concerns. President Trump has expressed support for a deal allowing the platform to continue operating in the US, a stance that contrasts with many in Congress. Ethics experts argue that any financial gain for the Trump family linked to such a decision would represent an apparent conflict of interest.

GD Culture Group's newfound crypto strategy mirrors that of Strategy, the software company turned Bitcoin mega-holder under Michael Saylor. However, unlike Strategy, which is a profitable enterprise with a long track record, GD Culture Group has no revenue and little public accountability. In February, the SEC issued a staff statement clarifying that memecoins are not considered unregistered securities, which may have influenced GD Culture Group's decision to invest in TRUMP.

Despite the announcement's headline-grabbing nature, the actual logistics of the investment remain unclear. The company has not provided a timeline for the purchases, any escrow protections, or the identity of the private investor. This raises the possibility that the move is more symbolic than substantive. The TRUMP token has seen a surge in activity, with over 287 on-chain holders and strong trading volume. A $300 million infusion could significantly impact the token’s liquidity and valuation, especially if the buyer enters the market aggressively.

However, the entire budget is unlikely to be allocated to TRUMP alone, and the percentage earmarked for Bitcoin could have less dramatic effects, given the size and maturity of that market. Whether this bet pays off for GD Culture Group or the Trump family may depend as much on Washington’s decisions on the ethics of president-owned memecoins. With digital assets in the spotlight, this unlikely marriage of a Chinese-linked TikTok player and a MAGA-themed memecoin in any other year would become one of 2025’s strangest financial storylines.