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GD Culture, a cryptocurrency treasury firm, plans to liquidate Bitcoin assets to finance share repurchases.
The company’s stock has diminished by approximately two-thirds since reaching its peak last year, which coincided closely with bitcoin’s all-time high exceeding $126,000.
(Dmytro Glazunov/Unsplash/Modified by CoinDesk)
What to know:
- GD Culture Group has obtained board consent to liquidate a fraction of its bitcoin reserve in order to finance a stock buyback initiative.
- The firm currently possesses 7,500 bitcoins, valued at approximately $497 million, and is facing an unrealized loss of $344 million.
- On Wednesday, shares increased, yet have experienced a decline of roughly two-thirds of their value in tandem with the significant drop in bitcoin’s price.
GD Culture Group (GDC) announced that it has secured board authorization to offload a portion of its 7,500 bitcoin reserve to support a previously disclosed stock repurchase program.
This board endorsement enables management to determine the timing and method of executing the bitcoin sales. GD Culture clarified that there is no obligation to sell a specific amount and the plan can be modified or suspended at any time.
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Confronted with a drastic downturn in stock value while bitcoin prices have plummeted in recent months, the board approved a $100 million buyback plan earlier this month.
The company’s bitcoin assets are currently valued at around $497 million, based on data from CoinGecko. This figure has declined over time, with GD Culture reporting an unrealized loss of $344 million, which is nearly a 41% drop from its total acquisition expenditure of $841.5 million.
The company acquired its substantial bitcoin holdings through the purchase of Pallas Capital Holding. This acquisition was initially financed by issuing 39.18 million shares.
Other firms have also started to divest their bitcoin assets. Earlier this week, Bitdeer liquidated its entire BTC holdings to transition into AI data centers, while Riot Platforms reduced its BTC inventory late last year.
GDC shares rose by 7% on Wednesday along with a slight recovery in bitcoin prices, surpassing $67,000. Nevertheless, they remain down nearly 70% from their peak in September 2025.
