Anand Sinha
2 min read
GD Culture Group (Nasdaq: GDC), a tech firm with operations in China, has announced a $300 million funding deal to purchase Bitcoin (BTC) and the Official Trump (TRUMP) meme coin, The Wall Street Journal reported on May 14.
The New York-based GDC said in a statement on May 12 that it plans to purchase BTC and TRUMP in order to create a “crypto asset treasury strategy.” The goal is to enhance its balance sheet with "high-performance, scalable digital assets."
GDC is an artificial intelligence (AI) company that has a market value of approximately $26 million. The firm says it generates digital avatars using AI to sell products such as home appliances and snacks on TikTok.
Helmed by chairman and CEO Xiaojian Wang, the loss-making company has a majority-owned subsidiary in China.
"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 said.
The GDC stock skyrocketed to $5.97 as it surged more than 240% following the announcement on May 12. However, it soon retreated to the previous price level. The stock was trading at $2.19 at the time of writing.
TRUMP is the fourth-largest meme coin, with a market cap of $2.6 billion. Launched by Donald Trump three days ahead of his presidential inauguration on Jan. 20, the meme coin surged more than 300% to reach the record high of $73.43 on Jan. 19.
However, the meme coin tanked very soon and couldn't make a comeback until the team announced on Apr. 23 an exclusive gala dinner with Trump for the top 220 token holders. Even then, it couldn't rise more than $15.
At the time of writing, TRUMP was exchanging hands at $13.25, down 1.5% a day.
