Yet another obscure money losing company with an evolving mission announced it would start a Trump meme coin and Bitcoin treasury with the backing of a British Virgin Islands accredited investor.
Oddly, GD Culture Limited has a British Virgin Islands subsidiary, Citi Profit Investment Holding Limited.
It's not clear if the accredited investor ponying up $300 million for $TRUMP or Bitcoin is internal or external. The company had multiple equity raises, $9.5 million in 2023 and $5.5 million yesterday.
GD Culture was formerly known as Code Chain New Continent Limited. A SEC filing indicated its interest in Bitcoin mining.
Code Chain New Continent Limited (the “Company”) entered into an asset purchase agreement with Sichuan RiZhanYun Jisuan Co., Ltd., (the “Seller”) on February 23, 2021, which was amended and restated on April 16, 2021 and further amended on May 28, 2021 (the “Agreement”). Pursuant to the Agreement, the Company purchased, and the Seller sold, a total of 10,000 Bitcoin mining machines (the “Assets”) for a total purchase price of RMB 40,000,000 or US$6,160,000 based on the exchange rate as of April 8, 2021 (the “Purchase Price”), payable in the form of 1,587,800 shares of common stock of the Company. In addition, pursuant to the Agreement, the Seller agreed to cause revenue and any other source of income from the operation of the Assets to be paid to the Company, payable in cryptocurrency to be deposited into a cryptocurrency wallet held by the Company on a daily basis. The Company agreed to issue to the Seller or its designees certain bonuses, payable in the common stock of the Company upon meeting certain milestones. On June 1, 2021, the Company issued to the Seller’s designee 2,513,294 shares of common stock (the “Shares”), consisted of (i) the Purchase Price in the form of 1,587,800 shares of common stock and (ii) 925,494 bonus shares for meeting and exceeding certain milestones.
China outlawed Bitcoin mining so this deal "never occurred," despite the mention of meeting and beating milestones.
Because the Assets were never delivered to the Company and the Company has not received and is not able to accept cryptocurrency from the operation of the Assets, the Company and the Seller agreed to rescind the Agreement and cancel the Shares.
A company press release indicated 10,000 Bitcoin mining machines were purchased from Chengdu RiZhanYunJisuan Co., Ltd. StreetInsider reported on 3-18-21:
Code Chain New Continent Limited (the "Company" or "Code Chain" or "We") (NASDAQ: CCNC), a leading eco-technology company, today announced that it completed the previously announced purchase of 10,000 Innosilicon T2T Bitcoin mining machines with Chengdu RiZhanYunJisuan Co., Ltd.
The miners are expected to be immediately deployed to provide an estimated 240 PH/s of Bitcoin mining hash rate capacity. To ensure regulatory compliance with mining machine delivery, the Company's Chief Financial Officer, Auditor, local legal counsel, and a third-party evaluation advisor supervised and diligently guided the proper delivery procedure of the 10,000 miners at several locations in Xinjiang, China from March 2 to 5, 2021.
GD Culture has been all over the map strategically. The company is a consistent money loser. That makes the latest cryptocurrency treasury company similar to other recent converts to Bitcoin evangelist Michael Saylor. KindlyMD-Nakamoto and Gryphon-American Bitcoin have medical marijuana in their history as well as big operating losses.
It will be interesting to see if the mysterious British Virgin Islands accredited investor is revealed and if they are trying to curry favor with Trump II, the digital Caligula. Might they really be from the PRC? If so, what's China's strategy?
