Publicly-listed holding company GD Culture Group Ltd. (NASDAQ:GDC) announced its intentions to raise up to $300 million to build a cryptocurrency reserve made up of Bitcoin (CRYPTO: BTC) and Official Trump (CRYPTO: TRUMP) on Monday.
What Happened: The Nasdaq-listed firm plans to use the proceeds from a stock sale to an “accredited” entity in the British Virgin Islands to finance this investment, according to a press release.
GDC said it wanted to improve its balance sheet with “high-performance, scalable digital assets,” as part of a broader pivot toward decentralized finance.
The company conducts business mainly through its wholly owned U.S. subsidiary AI Catalysis Corp. and China-based Shanghai Xianzhui Technology Co, Ltd.
GDC, which runs an e-commerce business on the Chinese-owned video-sharing app TikTok, reported no revenue last year and has a small team of just eight employees, reported The New York Times, citing public filings.
See Also: XRP Skyrockets 10%: What Is Going On?
Why It Matters: This move by GDC comes days after Freight Technologies Inc. (NASDAQ:FRGT) became the first public company to adopt President Donald Trump’s meme coin as a treasury reserve asset.
The cross-border logistics company said the decision was an “effective” way to advocate for fair and free trade between Mexico and the U.S.
The meme coin has sparked political outrage, with Democratic lawmakers accusing Trump of corruption for selling access to himself in exchange for payments made with his meme coin. Trump has refuted claims that he is financially benefiting from the coin.
Price Action: At the time of writing, TRUMP was exchanging hands at $13.56, up 7.53% in the last 24 hours, according to data from Benzinga Pro.
Shares of GDC were up 3.27% in after-hours trading after closing 2.73% lower at $2.140 during Tuesday's regular session. The stock was up 13.23% year-to-date.
GDC scored high on the momentum metric as of this writing. If you want to fill your portfolio with similar high-momentum stocks, visit Benzinga Edge Stock Rankings for more details.
Photo Courtesy: Bori Slim On Shutterstock.com
Read Next:
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.