On May 13, 2025, GD Culture Group Limited – a microcap company listed on Nasdaq – announced plans to raise 300 million USD to purchase Bitcoin and Trump Coin, despite warnings of potential delisting from the exchange. Is this a smart strategy or a risky move? Let’s analyze in detail.


Bold Plan: 300 Million USD for Crypto

#GDCultureGroup The company operating in the AI digital technology and livestreaming sector announced on Monday that they have signed a stock purchase agreement with an investor from the British Virgin Islands to raise up to 300 million USD. This amount will be used to build a crypto reserve fund, focusing on Bitcoin (price 102,500 USD) and Trump Coin (price 12.6 USD, down 9% in 24 hours). Chairman and CEO Xiaojian Wang stated: “This is a deliberate strategy that reflects industry trends and our unique strengths.” The company plans to integrate digital assets into treasury operations in the long term, following the trend of large companies like Strategy (568,840 BTC) and Metaplanet (6,796 BTC).


Financial Pressure: Risk of Delisting

However, this plan was announced just weeks after #NASDAQ warning that GD Culture does not meet the minimum equity requirement of 2.5 million USD, with current equity at only 2,643 USD – nearly zero. The company was required to submit a compliance plan by May 4, with a maximum deadline of 180 days to rectify, or it will be delisted. GDC stock (NASDAQ: GDC) showed high volatility: soaring to 8.18 USD at Monday's opening, but plummeting to 2.51 USD at closing – down nearly 70%. With a market capitalization of only 28 million USD and a net loss of 14 million USD in 2024, GD Culture's crypto ambitions raise concerns among analysts about execution risk and dilution of shares.


GD Culture's Transformation Journey

GD Culture has repositioned itself multiple times: previously known as TMSR Holding Company Limited, then changed to Code Chain New Continent Limited, and in January 2023 adopted its current name. Transitioning from coal processing and iron ore trading, the company has shifted towards digital content and AI technology, currently operating through two branches: AI Catalysis (USA) and Shanghai Xianzhui Technology (China). The continuous 'rebranding' and now significant investment in crypto raises questions about the sustainability of this strategy, especially when the financial situation is alarming.


Impact on the Crypto Market

This event brings many signals:



  • Organizational trend: Crypto fund inflows reached 3.4 billion USD last week, Bitcoin ETFs attracted 1.8 billion USD, with projections accumulating 330 billion USD into Bitcoin by 2029.


  • Price growth: $BTC (102,500 USD) and altcoins like $SOL remain stable, but $TRUMP Coin dropped 9%, indicating risks from memecoins.


  • Investor sentiment: GD Culture's plans may inspire small companies, but also raise concerns about feasibility as the company is facing difficulties.



Future Prospects

If GD Culture fails to meet Nasdaq's requirements in the next 180 days, the risk of delisting will severely impact its crypto plans. However, if the crypto market continues to grow in the next 1-2 years – with Bitcoin potentially reaching 200,000 USD as forecasted – this move could yield substantial profits. Nevertheless, investing in Trump Coin – a politically-themed memecoin – is considered risky and could be contentious.


Conclusion: Will GD Culture's Crypto Gamble Succeed?

GD Culture Group shocks by raising 300 million USD to buy Bitcoin and Trump Coin, despite delisting warnings from Nasdaq and a loss of 14 million USD in 2024. GDC stock plummeted from 8.18 USD to 2.51 USD, reflecting investor concern. This could be a bold move to embrace trends, but it is also a high-risk gamble. Investors need to closely monitor to assess the long-term impact.


Risk warning: Crypto investments carry high risks due to price volatility and legal uncertainties. Please consider carefully before participating. #anhbacong