GD Tradition Group (GDC), a Nasdaq-listed holding firm targeted on livestreaming, e-commerce and synthetic intelligence-powered digital human expertise, plans to lift as much as $300 million for a cryptocurrency treasury reserve.
In a Might 12 assertion, GDC and its subsidiary, AI Catalysis, introduced coming into into a standard inventory buy settlement with a British Virgin Islands restricted legal responsibility firm to promote as much as $300 million of its frequent inventory.
The proceeds from the inventory sale shall be used to fund the agency’s crypto treasury, which is able to embody purchases of Bitcoin (BTC) and the Official Trump (TRUMP) token.
“Beneath this initiative, and topic to sure limitations, GDC intends to allocate a good portion of the proceeds from any share gross sales underneath the power to the acquisition, long-term holding, and integration of crypto belongings into its core treasury operations,” the corporate stated within the announcement.
GDC described the technique as a transfer to align with the broader “decentralization transformation.”
Based in 2016, GDC is a micro-cap firm with a present $34 million market capitalization, in accordance to Nasdaq information.
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GDC’s chairman and CEO, Xiaojian Wang, stated the initiative builds on the corporate’s strengths in digital applied sciences and positions it for a blockchain-powered industrial shift.
“GDC’s adoption of crypto belongings as treasury reserve holdings is a deliberate technique that displays each present trade developments and our distinctive strengths in digital applied sciences and the livestreaming e-commerce ecosystem,” Wang stated.
The inventory providing was introduced over a month after the agency acquired a noncompliance warning from Nasdaq associated to its stockholders’ fairness. The discover indicated that the agency reported stockholders’ fairness of solely $2,643, properly under the minimal requirement of $2.5 million.
The agency was given till Might 4 to submit a plan to adjust to the itemizing necessities. If accepted by Nasdaq, the compliance plan will permit as much as 180 days from the notification interval to adjust to the necessities.
The Nevada-based firm joins a small however rising group of public corporations which are allocating a part of their stability sheets to crypto belongings.
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Trump token dinner deliberate for high holders
GDC’s announcement coincides with an upcoming high-profile occasion tied to the Trump token venture. The 25 largest holders of TRUMP tokens are set to attend a non-public dinner on the White Home on Might 22.
Nonetheless, the TRUMP memecoin venture stated in a Might 12 X put up that it has stopped contemplating further purchases for the dinner and that the attendees had been notified to use for background checks.
Based on information offered on the venture’s leaderboard, the highest 220 wallets held greater than 13.7 million tokens as of Might 12, price about $174 million on the time of publication.
Some US lawmakers have criticized the dinner. Republican Senator Cynthia Lummis reportedly stated that the concept of the US president providing unique entry for individuals keen to pay “offers [her] pause.”
Crypto regulation consultants additionally worry that the Trump household’s crypto endeavors might set off extra regulatory scrutiny by the US Securities and Trade Fee, as politically affiliated memecoins introduce a brand new problem for crypto laws.
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