Chinese Firms at Delisting Risk on NYSE Seek to Boost Stock Prices with Trump Meme Coin Investment

# Chinese Companies Facing Delisting Turn to Meme Coins for Stock Revival Some Chinese companies on the verge of being delisted from U.S. stock exchanges are pivoting to meme coins to rejuvenate their stock prices, as reported by *The Wall Street Journal* on October 21. Among their strategies, these firms are placing their bets on OFFICIAL TRUMP (TRUMP), a cryptocurrency named after former President Donald Trump. # GD Culture Group and Addentax Group Lead the Charge GD Culture Group, a New York-based tech firm with operations in China, announced on October 12 plans to raise $300 million to acquire Bitcoin (BTC) and TRUMP. This announcement led to a 14% surge in the company’s shares the same day. Similarly, Addentax Group, a Shenzhen-based apparel manufacturer, disclosed three days later that it was in discussions with private investors to secure up to $800 million for purchasing TRUMP and Bitcoin. This caused Addentax’s stock to initially spike over 150% during intra-day trading, though it ultimately closed 7% lower. Both companies share common traits: they are Nasdaq-listed firms at risk of delisting due to non-compliance with listing standards, and they aim to enhance their stock prices by announcing cryptocurrency investment plans. # Leveraging the “Trump” Name Daniel McClory of Boustead Securities noted, “These firms are leveraging the ‘Trump’ name to trigger stock rebounds. We’re likely to see more instances of this strategy ahead.” Former President Donald Trump has recently expressed public support for the cryptocurrency industry and plans to host a dinner event with TRUMP token holders, adding to the asset’s growing momentum. # Compliance Issues Loom for GD Culture and Addentax GD Culture received a non-compliance notice from Nasdaq last March for not meeting the minimum capitalization requirement. Addentax has also faced delisting threats as its stock price remained below $1 for over 30 consecutive days, violating exchange rules. This trend recalls previous instances during the cryptocurrency boom when companies tried leveraging blockchain-related hype to boost stock performance. Notably, Long Island Iced Tea rebranded as Long Blockchain, leading to a temporary stock surge. # U.S. Companies Join the Trend This phenomenon isn’t limited to Chinese firms. Freight Technologies, a U.S.-based logistics company, disclosed a $2 million purchase of TRUMP. The company also announced plans to issue $20 million in convertible bonds to expand its meme coin holdings. # Expert Concern Over Corporate Investments in Meme Coins Cory Klippsten, CEO of Swan Bitcoin, expressed skepticism about these strategies, stating, “Corporate funds should be used to preserve value securely. Investments in meme coins merely provide short-term stock price boosts and lack real efficacy.” The rising trend of companies embracing cryptocurrencies, particularly meme coins like TRUMP, underscores the growing influence of digital assets and highlights the risks of speculative corporate strategies in volatile markets.