Microcap Agency Plans $300M Bitcoin, Trump Coin Purchase Regardless of Nasdaq Compliance Warning – Decrypt

Microcap agency GD Tradition Group Restricted plans to promote as much as $300 million in inventory to finance purchases of Bitcoin and Trump Coin, even because it stares down a Nasdaq delisting menace over monetary shortfalls.

The corporate, which operates AI-driven digital human expertise and livestreaming companies, introduced Monday it signed a purchase order settlement with a British Virgin Islands investor to fund its new crypto treasury technique.

The transfer is “a deliberate technique that displays each present trade traits and our distinctive strengths,” Chairman and CEO Xiaojian Wang mentioned within the assertion, characterizing his firm’s resolution.

GD Tradition joins a rising development of public firms, corresponding to Technique and Metaplanet, who’ve continued to include crypto into their treasury operations, stocking up on Bitcoin for essentially the most half.

However GD Tradition’s Group’s resolution to go all in on crypto comes simply weeks after Nasdaq warned the corporate it not meets minimal stockholders’ fairness necessities.

In keeping with regulatory filings cited by Nasdaq and likewise shared on the corporate’s web site, GD Tradition reported fairness of simply $2,643 towards the $2.5 million threshold required by Nasdaq for continued itemizing.

The corporate was given till Could 4 to submit a compliance plan to Nasdaq, which grants it as much as 180 calendar days to repair up, whereas persevering with to commerce below its GDC ticker.

Decrypt reached out to Nasdaq and GD Tradition Group for remark however didn’t instantly obtain responses by press time.

With a market cap of $28 million and web losses of $14 million in 2024, GD Tradition’s crypto ambitions elevate considerations about execution and shareholder dilution.

GD Tradition has repeatedly reinvented itself, beforehand working as Code Chain New Continent Restricted till its title change in January 2023, and earlier than that as TMSR Holding Firm Restricted.

Following these rebrands, it now operates by way of its wholly owned U.S. subsidiary, AI Catalysis, and Shanghai Xianzhui Know-how Co., Ltd, a China-based subsidiary.

Its previous enterprise actions ranged from coal processing to iron ore buying and selling earlier than its present concentrate on digital content material and AI expertise.

Bitcoin traded at roughly $102,500 on the time of writing, whereas Trump Coin was priced at $12.6, down 9% over the previous 24 hours.

GD Tradition’s inventory (NASDAQ: GDC) closed at $2.51, after rising as excessive as $8.18 on Monday’s open following the announcement, information on Nasdaq reveals.

Edited by Sebastian Sinclair