Management wins board approval to sell BTC

GD Culture Group Authorizes Bitcoin Sales to Fund $100 Million Stock Buyback Amid Market Volatility

In a bold move signaling both adaptability and financial recalibration, GD Culture Group (GDC) has secured board approval to liquidate a portion of its substantial Bitcoin holdings to finance a newly announced $100 million share repurchase program. The decision comes at a time when the cryptocurrency market is experiencing heightened turbulence, with Bitcoin’s price having plummeted significantly in recent months, dragging down the valuation of corporate treasuries that once viewed the digital asset as a strategic reserve.

According to the company’s official statement, the board has granted management the discretion to determine the timing and scale of any Bitcoin sales. Importantly, GD Culture emphasized that it is under no obligation to sell a predetermined quantity and retains the flexibility to modify or suspend the plan entirely based on evolving market conditions. This measured approach underscores the company’s intent to balance liquidity needs with long-term asset management strategy.

The backdrop to this decision is a sharp decline in GDC’s stock price, which has mirrored the broader downturn in Bitcoin’s market value. In response, the board approved the ambitious $100 million repurchase initiative earlier this month, aiming to bolster investor confidence and provide support to the company’s sagging share price. The move reflects a growing trend among publicly traded firms to leverage buybacks as a tool to signal value and stabilize equity performance during periods of market uncertainty.

GD Culture’s Bitcoin holdings, currently valued at approximately $497 million according to data from CoinGecko, represent a significant but diminished asset on the company’s balance sheet. The unrealized loss on these holdings stands at a staggering $344 million, marking a decline of nearly 41% from the original acquisition cost of $841.5 million. This erosion in value highlights the volatile nature of cryptocurrency investments and the risks associated with large-scale treasury allocations in digital assets.

The company’s substantial Bitcoin stash was acquired through its purchase of Pallas Capital Holding, a deal that was initially financed by issuing 39.18 million new shares. At the time, the acquisition was seen as a strategic move to diversify the company’s asset base and capitalize on the burgeoning crypto market. However, the subsequent market downturn has transformed what was once a growth asset into a liability, prompting the need for strategic divestiture.

GD Culture is not alone in its pivot away from Bitcoin. Earlier this week, Bitdeer, a prominent Bitcoin mining firm, sold its entire BTC treasury to fund a strategic shift into AI data centers, reflecting a broader industry trend toward artificial intelligence and away from traditional crypto mining. Similarly, Riot Platforms reduced its Bitcoin holdings by $200 million in the final two months of 2025, underscoring the growing caution among crypto-exposed companies in the face of market headwinds.

On the stock market front, GDC shares have responded positively to the announcement, climbing 7% on Wednesday. This uptick coincides with a modest recovery in Bitcoin’s price, which has rebounded above the $67,000 mark. Despite this short-term gain, the company’s stock remains down by nearly 70% from its September 2025 peak, illustrating the significant challenges it faces in restoring investor confidence and reversing its downward trajectory.

The decision to tap into Bitcoin reserves for a stock buyback is a calculated risk that reflects the company’s need to stabilize its equity position while navigating a volatile digital asset landscape. It also signals a pragmatic shift in corporate treasury management, where flexibility and responsiveness to market dynamics are becoming increasingly critical.

As the cryptocurrency market continues to evolve, GD Culture’s move may serve as a bellwether for other firms grappling with the dual pressures of maintaining crypto exposure while safeguarding shareholder value. Whether this strategy will yield the desired stabilization of GDC’s stock price remains to be seen, but it undoubtedly marks a pivotal moment in the company’s financial strategy and its relationship with the digital asset ecosystem.

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