- GD Culture Group plans to raise $300M to invest in BTC and $TRUMP
- The investment will be funded by a stock sale to a British Virgin Islands entity.
- Foreign companies are increasingly using $TRUMP investments to gain favor with Trump.
A Chinese-linked company, GD Culture Group, has revealed an unexpected plan. The company announced its intention to raise $300 million through an investment deal. The funds raised will be used to acquire both Bitcoin and $TRUMP, a cryptocurrency with strong ties to the U.S. President Donald Trump.
The company has a small workforce and generates limited earnings from its TikTok operations. On Tuesday, GD Culture Group revealed its investment plans, which involve selling shares to raise funds. These funds will be transferred to a British Virgin Islands-based company, known for its tax advantages. Following the announcement, GD Culture Group shares jumped by 12% immediately following the news of the investment. Still, the stock’s price fell back the following day, illustrating how quickly such transactions can turn.
Related: Trump: “A Lot of Good Things” Coming to the US Next Month
Foreign companies are increasingly seeking opportunities to invest in the digital assets related to Trump. People have often leveraged those ties to increase their visibility and popularity.
$TRUMP Memecoin Investment Sparks Ethical Concerns
The launch of $TRUMP in January created a buzz amongst investors and crypto enthusiasts. Many have treated the Trump cryptocurrency as a gamble without any practical purpose. The firm gave no specific rationale for investing in $TRUMP but said the move could boost its financial status. Others argue that foreign endorsement of memecoins could sway Trump’s decisions in the business and political arena.
Charles Dent, the former head of the House Ethics Committee, spoke out against the move. He argued that foreign countries are making these investments as a way to curry Trump’s favor. Dent expressed concerns about the moral, legal and constitutional ramifications of such investment.
The company is yet to provide confirmation as to whether it will complete the purchase. GD Culture Group has struggled financially and could be removed from the Nasdaq exchange. The precise amount of the investment that has been obtained is not yet determined. If this investment goes through, GD Culture Group would be the first Chinese company to buy into Trump’s memecoin.
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