GD Culture is the latest NASDAQ-listed company to go through a stock deal to turn into a BTC-buying entity. The deal follows similar mergers by prominent crypto figure David Bailey and from the investment fund of Vivek Ramaswamy.
GD Culture is the next NASDAQ-listed company to be used as a vehicle to build a Bitcoin (BTC) treasury. Potential new buyers aiming to build BTC reserves seek out suitable NASDAQ-listed companies, which offer better access to funding.
Following the announcement, GDC stock traded at $2.51, near its higher range for the year to date.
GD Culture follows two recent reverse merger deals involving Nakamoto Holdings and Strive Asset Management. GDC will offer a smaller stock sale to raise liquidity for building crypto reserves.
GD Culture Group (GDC) and its subsidiary AI Catalysis Corp. entered into a common stock purchase agreement with an unnamed accredited investor, registered as a British Virgin Islands limited liability company. GDC will sell up to $300M of its common stock, which will be used for a crypto purchasing facility.
The recent purchases show a trend of more businesses trying to add crypto to their balance sheet, either for material exposure or as a form of marketing. Corporate treasuries vary widely, with some buyers holding as little as 17 BTC. High-profile corporate purchases are often smaller than random anonymous whales, but they boost exposure to the BTC narrative and may drive additional mainstream interest in BTC as a reserve asset.
Corporate treasuries and other large-scale holders already control 3.32M BTC, up from 3.3M coins as of May 12. A total of 102 public companies and 26 private companies own BTC on their balance sheets.
The recent BTC treasury trend is seen as either the beginning of mass adoption through corporations or as a signal for peak greed. The recent purchases are at market prices near their peak, though earlier buyers are sitting on large unrealized gains.
Some corporate treasuries have surpassed smaller government wallets, growing ahead of El Salvador, Bhutan, North Korea, and Ukraine. Strategy (MSTR) remains the biggest corporate holder with 568,840 BTC after the latest purchase.
GD Culture to add BTC, TRUMP to its balance
All crypto purchases will become a part of the balance sheet of GDC, with the potential to add value as high-performing assets.
“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,” said Mr. Xiaojian Wang, Chairman and CEO of the accredited investment company.
Unlike other public entities, GDC will branch its crypto buying strategy, acquiring not only BTC but also Official Trump (TRUMP) tokens.
The crypto purchases are not planned and may be subject to limitations. GDC intends to allocate a significant part of the proceeds from share sales to acquire and hold crypto assets.
GDC is a Nevada-based entity using its subsidiaries AI Catalysis Corp. and Shanghai Xianzhui Technology Co. for its main activities. The company focuses on e-commerce through AI Catalysis, itself founded as a Nevada corporation. The main activities include AI-driven digital human technology, live-streaming and e-commerce.
