By Patricia Kowsmann and Angus Berwick
GD Culture Group, a small technology company with operations in China, said it struck a $300 million funding deal to help it amass a stockpile of cryptocurrencies, including President Trump's meme coin.
What is GD Culture Group?
Nasdaq-listed GDC has a market value of about $26 million. It says it uses artificial-intelligence algorithms and software to generate "digital human models." It uses these avatars to sell products on TikTok, including Asian snacks, small home appliances and gardening tools.
The lossmaking company is based in New York and has a majority-owned subsidiary in China. It is led by Chairman and Chief Executive Officer Xiaojian Wang.
What are its crypto plans?
GDC says it will raise up to $300 million through stock sales to support its "crypto asset treasury strategy," including purchases of both bitcoin and $TRUMP, the president's digital token. It would join numerous other companies, most prominently MicroStrategy, that have pivoted to focusing on their so-called treasury holdings of cryptocurrencies.
The stock price of GDC jumped early Monday after it announced the deal, but has since fallen back.
What is $TRUMP?
$TRUMP is one of a string of crypto ventures launched by the president and his family that are blurring the lines between his political and business interests.
Critics say the ventures open the door for foreign governments and businesses to influence Washington, by creating ample opportunities for quid pro quos and favor-seeking. Another Trump crypto business, World Liberty Financial, has joined with a United Arab Emirates state-backed investor and crypto exchange Binance, whose convicted founder Changpeng Zhao has been pushing for a presidential pardon.
The meme coin rallied in late April on news that the top 220 holders would be invited to a May 22 gala dinner with the president. $TRUMP has a market value of almost $3 billion.
How does GDC intend to buy $TRUMP?
The company says it has secured a funding commitment from an investor based in the British Virgin Islands, which it didn't name. The deal appears to be structured as a so-called equity line of credit. That means the investor will buy up to $300 million of stock over time, at a discount to recent traded prices, and then resell it in the open market.
Write to Patricia Kowsmann at patricia.kowsmann@wsj.com and Angus Berwick at angus.berwick@wsj.com
(END) Dow Jones Newswires
May 14, 2025 10:24 ET (14:24 GMT)
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