GDC Plans $300M Stock Sale for Crypto Treasury Reserve

GDC, a Nasdaq-listed holding company specializing in livestreaming, e-commerce, and artificial intelligence-powered digital human technology, has announced plans to raise up to $300 million through the sale of its common stock. The proceeds from this stock sale will be allocated to establish a cryptocurrency treasury reserve, which will include the acquisition of Bitcoin (BTC) and the Official Trump (TRUMP) token.

In a statement released on May 12, GDC and its subsidiary, AI Catalysis Corp., revealed that they have entered into a common stock purchase agreement with a British Virgin Islands limited liability company. This initiative is part of GDC's broader strategy to align with the "decentralization transformation" and integrate crypto assets into its core treasury operations.

GDC's chairman and CEO, Xiaojian Wang, emphasized that this move leverages the company's strengths in digital technologies and positions it for a blockchain-powered industrial shift. "GDC’s adoption of crypto assets as treasury reserve holdings is a deliberate strategy that reflects both current industry trends and our unique strengths in digital technologies and the livestreaming e-commerce ecosystem," Wang stated.

The stock offering comes over a month after GDC received a noncompliance warning from Nasdaq regarding its stockholders’ equity. The firm reported stockholders’ equity of only $2,643, significantly below the minimum requirement of $2.5 million. GDC was given until May 4 to submit a plan to comply with the listing requirements, with up to 180 days from the notification period to meet the requirements if the plan is accepted by Nasdaq.

GDC's announcement coincides with an upcoming high-profile event tied to the Trump token project. The 25 largest holders of TRUMP tokens are set to attend a private dinner at the White House on May 22. However, the TRUMP memecoin project has stated that it has stopped considering additional purchases for the dinner and that attendees have been notified to apply for background checks.

Some lawmakers have expressed concerns about the dinner, with Senator Cynthia Lummis reportedly stating that the idea of the US President offering exclusive access for people willing to pay for it “gives [her] pause.” Additionally, crypto regulation experts fear that the Trump family’s crypto endeavors may trigger more regulatory scrutiny by the US Securities and Exchange Commission, as politically affiliated memecoins introduce a new challenge for crypto legislation.