Publicly-listed holding business GD Culture Group Ltd GDC revealed its intents to raise as much as $300 million to construct a cryptocurrency reserve comprised of Bitcoin BTC/USD and Authorities Trump TRUMP/USD on Monday.
What Taken Place: The Nasdaq-listed company prepares to utilize the profits from a stock sale to an “recognized” entity in the British Virgin Islands to fund this financial investment, according to a news release.
GDC stated it wished to enhance its balance sheet with “high-performance, scalable digital properties,” as part of a more comprehensive pivot towards decentralized financing.
The business carries out organization primarily through its entirely owned U.S. subsidiary AI Catalysis Corp. and China-based Shanghai Xianzhui Innovation Co, Ltd.
GDC, which runs an e-commerce organization on the Chinese-owned video-sharing app TikTok, reported no earnings in 2015 and has a little group of simply 8 workers, reported The New york city Times, mentioning public filings.
See Likewise: XRP Escalates 10%: What Is Going On?
Why It Matters: This relocation by GDC comes days after Freight Technologies Inc FRGT ended up being the very first public business to embrace President Donald Trump’s meme coin as a treasury reserve possession.
The cross-border logistics business stated the choice was an “efficient” method to promote for reasonable and open market in between Mexico and the U.S.
The meme coin has actually triggered political outrage, with Democratic legislators implicating Trump of corruption for offering access to himself in exchange for payments made with his meme coin. Trump has actually refuted claims that he is economically taking advantage of the coin.
Disclosure: 82% of retail CFD accounts lose cash
Rate Action: At the time of composing, TRUMP was exchanging hands at $13.56, up 7.53% in the last 24 hr, according to information from Benzinga Pro.
Shares of GDC were up 3.27% in after-hours trading after closing 2.73% lower at $2.140 throughout Tuesday’s routine session. The stock was up 13.23% year-to-date.
GDC scored high up on the momentum metric since this writing. If you wish to fill your portfolio with comparable high-momentum stocks, see Benzinga Edge Stock Rankings for more information.
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Disclaimer: This material was partly produced with the assistance of Benzinga Neuro and was examined and released by Benzinga editors.