Microcap Firm Plans $300M Bitcoin, Trump Coin Buy Despite Nasdaq Compliance Warning

Microcap Firm Plans $300M Bitcoin, Trump Coin Buy Despite Nasdaq Compliance Warning Shares of GD Culture fell sharply after the company unveiled a $300 million crypto reserve plan that followed a Nasdaq delisting warning. In brief GD Culture Group plans to raise up to $300 million for crypto purchases, including Bitcoin and Trump Coin. The company recently received a Nasdaq delisting warning after reporting just $2,643 in stockholders’ equity. Shares surged Monday before falling sharply to close at $2.51. Decrypt’s Art, Fashion, and Entertainment Hub. Microcap firm GD Culture Group Limited plans to sell up to $300 million in stock to finance purchases of Bitcoin and Trump Coin, even as it stares down a Nasdaq delisting threat over financial shortfalls. The company, which operates AI-driven digital human technology and livestreaming businesses, announced Monday it signed a purchase agreement with a British Virgin Islands investor to fund its new crypto treasury strategy. The move is "a deliberate strategy that reflects both current industry trends and our unique strengths," Chairman and CEO Xiaojian Wang said in the statement, characterizing his company's decision. GD Culture joins a growing trend of public companies, such as Strategy and Metaplanet , who have continued to incorporate crypto into their treasury operations, stocking up on Bitcoin for the most part. But GD Culture's Group's decision to go all in on crypto comes just weeks after Nasdaq warned the company it no longer meets minimum stockholders' equity requirements. According to regulatory filings cited by Nasdaq and also shared on the company's website, GD Culture reported equity of just $2,643 against the $2.5 million threshold required by Nasdaq for continued listing. The company was given until May 4 to submit a compliance plan to Nasdaq, which grants it up to 180 calendar days to fix up, while continuing to trade under its GDC ticker. Decrypt reached out to Nasdaq and GD Culture Group for comment but did not immediately receive responses by press time. With a market cap of $28 million and net losses of $14 million in 2024, GD Culture's crypto ambitions raise concerns about execution and shareholder dilution. GD Culture has repeatedly reinvented itself, previously operating as Code Chain New Continent Limited until its name change in January 2023, and before that as TMSR Holding Company Limited. Following those rebrands, it now operates through its wholly owned U.S. subsidiary, AI Catalysis, and Shanghai Xianzhui Technology Co., Ltd, a China-based subsidiary. Its past business activities ranged from coal processing to iron ore trading before its current focus on digital content and AI technology. Bitcoin traded at approximately $102,500 at the time of writing, while Trump Coin was priced at $12.6, down 9% over the past 24 hours. GD Culture’s stock (NASDAQ: GDC) closed at $2.51, after rising as high as $8.18 on Monday's open following the announcement, data on Nasdaq shows.' Edited by Sebastian Sinclair Daily Debrief Newsletter