An under-the-radar Nasdaq-listed company is reportedly raising hundreds of millions of dollars to acquire crypto assets, including Official Trump (TRUMP), the President’s own meme token.
According to a new report from The Wall Street Journal, GD Culture Group – a New York-based artificial-intelligence (AI) software firm with a market value of about $26 million – has raised $300 million to purchase digital assets such as Bitcoin (BTC) and TRUMP.
The report says that the firm’s main investor is based in the British Virgin Islands, but no specific entity or person was named.
The deal appears to be structured as an equity line of credit, meaning the investor will purchase $300 million worth of the firm’s stock over time at a discounted price and then sell the shares on the open market.
News of the fundraise boosted GD Culture Group’s (GDC) stock price, pushing it from a low of $2.14 on May 13th to a peak of $2.31 on the 14th. GDC has since retraced and is trading for $2.18 at time of writing, a 1.94% increase during the last 24 hours.
GDC, which the report says uses AI-based algorithms to create digital human avatars to sell products on the social media app TikTok, joins other firms, such as Strategy, in creating a crypto asset treasury.
BTC is trading for $103,402 at time of writing, a fractional decrease on the day, while TRUMP is valued at $13.16, a 2.4% increase during the last 24 hours.
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