A struggling technology company that has ties to China and relies on TikTok made an unusual announcement this week. It had secured funding to buy as much as $300 million of $TRUMP, the so-called memecoin marketed by President Trump.
GD Culture Group, a publicly traded firm with a Chinese subsidiary, has only eight employees, its public filings show, and recorded zero revenue last year from an e-commerce business it operates on TikTok, the Chinese-owned video-sharing app.
But on Monday, GD Culture Group became the latest foreign business to seize on Mr. Trump’s crypto venture, which channels profits directly to the Trump family and has generated conflicts of interest that have alarmed ethics experts. (Memecoins like $TRUMP are a type of cryptocurrency based on an online joke or celebrity mascot and have traditionally not had any utility beyond speculation.)
In its statement, GD Culture Group, which is traded on the Nasdaq, said it would spend $300 million on a stockpile of Bitcoin and $TRUMP, using proceeds from a stock sale to an unnamed entity in the British Virgin Islands, a popular tax haven. It confirmed that investment plan in a securities filing late Tuesday.
The purchase would create clear ethical conflicts, enriching Mr. Trump’s family at the same time that the president tries to reach a deal that would allow TikTok to keep operating in the United States rather than face a congressionally approved ban.
The announcement also shows how investors around the world, including some that have virtually no public footprint, have latched on to the president’s crypto ventures to boost their own business prospects.
