GD Culture Group Limited Announces $300 Million Funding Commitment to Build Cryptocurrency Reserve of Bitcoin and Trump Coin

Rhea-AI Summary

GD Culture Group Limited (NASDAQ: GDC) has secured a $300 million funding commitment through a Common Stock Purchase Agreement with an accredited investor from the British Virgin Islands. The company plans to use the proceeds to implement a crypto asset treasury strategy, focusing on purchasing and holding Bitcoin (BTC) and OFFICIAL TRUMP (TRUMP) tokens.

The initiative aims to integrate crypto assets into GDC's core treasury operations, reflecting the company's commitment to decentralization transformation. CEO Xiaojian Wang emphasized that this strategy aligns with industry trends and leverages GDC's strengths in digital technologies and livestreaming e-commerce ecosystem.

Positive

• Secured substantial $300 million funding commitment for crypto asset acquisition
• Strategic diversification of treasury holdings into digital assets
• Potential for asset appreciation through Bitcoin and Trump Coin investments
• Alignment with emerging DeFi ecosystem trends

Negative

• Potential share dilution due to new stock issuance
• High volatility risk exposure through cryptocurrency investments
• Significant concentration in speculative digital assets
• Regulatory uncertainty surrounding cryptocurrency holdings

News Market Reaction

+14.09%

1 alert

+14.09% News Effect

On the day this news was published, GDC gained 14.09%, reflecting a significant positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

NEW YORK, May 12, 2025 (GLOBE NEWSWIRE) -- GD Culture Group Limited (“GDC” or the “Company”) (Nasdaq: GDC), and its subsidiary, AI Catalysis Corp. (“AI Catalysis”), today announced that it has entered into a Common Stock Purchase Agreement (the “Agreement”) with an accredited investor (an “Investor”), a British Virgin Island limited liability company, providing for the sale by the Company of up to $300 million of its common stock.

Proceeds from the facility will be used to support the Company’s crypto asset treasury strategy, including the purchase of Bitcoin (“BTC”) and OFFICIAL TRUMP (“TRUMP”). Under this initiative, and subject to certain limitations, GDC intends to allocate a significant portion of the proceeds from any share sales under the facility to the acquisition, long-term holding, and integration of crypto assets into its core treasury operations. This strategic move reflects the Company’s commitment to and confidence in the ongoing decentralization transformation.

Through the adoption of this crypto asset treasury strategy, GDC aims to enhance its balance sheet with high-performance, scalable digital assets while aligning itself with the expanding decentralized finance (DeFi) ecosystem.

Mr. Xiaojian Wang, Chairman and Chief Executive Officer of the Company, commented: “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. Our substantial partnership with the Investor provides strong momentum for this initiative, reinforcing our leadership in pursuing growth opportunities and embracing blockchain-driven industrial transformation. We believe our forward-looking strategy will further strengthen our financial foundation and drive long-term value creation for our shareholders as decentralized finance continues to evolve.”

About GD Culture Group Limited

GD Culture Group Limited (the “Company”) (Nasdaq: GDC), is a Nevada company currently conducting business mainly through its subsidiaries, AI Catalysis Corp. (“AI Catalysis”) and Shanghai Xianzhui Technology Co, Ltd. The company plans to enter into the livestreaming market with focus on e-commerce through its wholly owned U.S. subsidiary, AI Catalysis, a Nevada corporation incorporated in May 2023. The Company’s main businesses include AI-driven digital human technology, live-streaming e-commerce business. For more information, please visit the Company's website at https://www.gdculturegroup.com/.

For more information, please contact:

GD Culture Group Limited
Investor Relations Department
Email: ir@gdculturegroup.com

Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com

FAQ

What is GDC's $300 million funding commitment announced on May 12, 2025?

GDC secured a $300 million Common Stock Purchase Agreement with a British Virgin Islands investor to build a cryptocurrency reserve of Bitcoin and Trump Coin for its treasury operations.

How will GDC (NASDAQ: GDC) use the $300 million funding?

GDC plans to use the funding to implement a crypto asset treasury strategy, primarily purchasing and holding Bitcoin (BTC) and OFFICIAL TRUMP (TRUMP) tokens as part of its core treasury operations.

What cryptocurrencies will GDC stock (NASDAQ: GDC) invest in?

GDC will invest in Bitcoin (BTC) and OFFICIAL TRUMP (TRUMP) tokens as part of its crypto asset treasury strategy.

What is the purpose of GDC's cryptocurrency investment strategy?

The strategy aims to enhance GDC's balance sheet with digital assets, align with the DeFi ecosystem, and drive long-term shareholder value through blockchain-driven transformation.

Who is funding GDC's cryptocurrency investment?

An accredited investor, structured as a British Virgin Islands limited liability company, is providing the $300 million funding commitment through a Common Stock Purchase Agreement.