Firms Seek Market Lifeline by Tapping Into Crypto Craze and Political Hype
Several small Chinese companies are betting big on a surprising asset to revive their dwindling fortunes on the US stock market—Donald Trump’s memecoin, $TRUMP. The latest moves come as these firms face the looming threat of delisting from Nasdaq and seek novel ways to boost their share prices amid mounting financial pressures.
GD Culture Group, a technology firm headquartered in New York with operations in China, announced on May 12 that it had secured a $300 million funding agreement. The purpose: to build a substantial crypto portfolio that includes bitcoin and the $TRUMP token. The market responded swiftly. Shares of GD Culture soared by 14% following the announcement.
Just three days later, Chinese garment company Addentax Group disclosed that it was in negotiations with undisclosed crypto holders to acquire as much as $800 million in $TRUMP tokens and bitcoin. Addentax’s stock initially surged over 150% in intraday trading, only to end the day down 7%.
Both companies, now vocal proponents of the president’s memecoin, are currently under Nasdaq scrutiny. GD Culture received a notice in March for falling short of Nasdaq’s $2.5 million minimum equity requirement. The company has yet to confirm whether it has since met compliance. Meanwhile, Addentax’s share price dipped below the critical $1 threshold, violating another Nasdaq listing rule. Although it temporarily regained compliance in March, its stock fell below the mark again on Monday.
“They want to invoke the T word so they get a lift and a bump,” said Daniel McClory, head of China at Boustead Securities. “I bet we’re going to see a lot more transactions like this certainly because crypto is hot.”
The Trump crypto connection appears to be generating significant interest across various sectors. A gala dinner scheduled for Thursday, reportedly attended by major $TRUMP holders, has drawn attention—and criticism—from ethics watchdogs.
Freight Technologies, a logistics firm based in Houston, has also jumped aboard the trend. It announced the acquisition of $2 million in $TRUMP tokens as part of its crypto diversification strategy and disclosed plans to raise up to $20 million through convertible bonds to fund further purchases.
Some crypto industry leaders remain skeptical. “A corporate treasury’s job is to preserve and build value for shareholders over time, not to speculate on the latest memecoins,” said Cory Klippsten, CEO of Swan Bitcoin. “However, if a loophole exists for purchasing influence, expect it to be exploited.”
The situation echoes previous crypto bull runs, where companies pivoted sharply toward digital assets to catch the market wave. Notably, Long Island Iced Tea’s rebranding to Long Blockchain stands as one of the most infamous examples.
Even unintended associations have produced market ripples. Shares of Wisesoft, a Chinese software company with no links to Trump, surged inexplicably last year—analysts suspect the name’s Mandarin pronunciation, loosely translating to “Trump Big Wisdom Win,” played a role as Trump gained political momentum.
As Trump’s affinity for crypto continues to shape market narratives, more small-cap firms may look to his digital tokens as their last resort to stay afloat in a volatile financial environment.
