Bitcoin treasury firm GD Culture set to sell BTC holdings to fund share buybacks
TL;DR
GD Culture Group plans to sell part of its 7,500 bitcoin holdings to fund a $100 million stock buyback program. The company currently faces a $344 million unrealized loss on its bitcoin investment. Shares rose 7% on the news but remain down nearly 70% from their peak.
Key Takeaways
- •GD Culture Group received board approval to sell bitcoin to fund stock repurchases, with management having discretion over timing and amount.
- •The company holds 7,500 bitcoins worth $497 million but carries a $344 million unrealized loss from its $841.5 million acquisition cost.
- •This move follows a sharp decline in both bitcoin price and GDC's stock value, which has fallen about two-thirds alongside bitcoin's drop.
- •Other companies like Bitdeer and Riot Platforms have also recently reduced their bitcoin holdings for strategic reasons.
- •Despite a 7% share price increase on the announcement, GDC shares remain down nearly 70% from their September 2025 peak.
Tags
What to know:
- GD Culture Group received board approval to sell part of its bitcoin reserve to fund a stock repurchase program.
- The company holds 7,500 bitcoins currently worth about $497 million, and is currently sitting on an unrealized loss of $344 million.
- Shares are higher on Wednesday, but have lost about two-thirds of their value alongside the sharp decline in the price of bitcoin.
- GD Culture Group received board approval to sell part of its bitcoin reserve to fund a stock repurchase program.
- The company holds 7,500 bitcoins currently worth about $497 million, and is currently sitting on an unrealized loss of $344 million.
- Shares are higher on Wednesday, but have lost about two-thirds of their value alongside the sharp decline in the price of bitcoin.
GD Culture Group (GDC) has received board approval to sell part of its 7,500 bitcoin reserve to help fund a previously announced stock repurchase program, the company said.
The board authorization allows management to decide when and how to carry out the bitcoin sales. GD Culture emphasized it’s not obligated to sell any set amount and can alter or halt the plan at any time.
Facing a sharp decline in the stock price as the price of bitcoin has tumbled in recent months, the board approved a $100 million repurchase program earlier this month.
The company’s bitcoin holdings are currently worth about $497 million, according to data from CoinGecko. That value has dropped over time, with GD Culture carrying an unrealized loss of $344 million, down nearly 41% from its total acquisition cost of $841.5 million.
The company got its large bitcoin stash through the acquisition of Pallas Capital Holding. The move was, at the time, financed through the issuance of 39.18 million shares.
Other companies have also started divesting their bitcoin holdings. Earlier this week, Bitdeer sold all of its BTC to fund a move into AI data centers, while Riot Platforms reduced its BTC balance late last year.
GDC shares are higher by 7% on Wednesday alongside a modest bounce in the price of bitcoin to above $67,000. They remain down by nearly 70% from their September 2025 peak.
- Tether is investing $200 million in online marketplace Whop to expand stablecoin-based payments.
- Whop will integrate Tether’s crypto wallet tools so users and creators can hold, transact and settle in stablecoins like USDT without banks or card networks.
- The funding will support Whop’s global expansion across Latin America, Europe and Asia-Pacific, further embedding Tether’s stablecoins in everyday online commerce.
Disclosure & Polices: CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of Bullish (NYSE:BLSH), an institutionally focused global digital asset platform that provides market infrastructure and information services. Bullish owns and invests in digital asset businesses and digital assets and CoinDesk employees, including journalists, may receive Bullish equity-based compensation.