GD Culture Group May Sell Bitcoin Holdings to Support Stock After BTC’s 50% Slide
GD Culture Group (GDC), a publicly traded holding company focused on digital marketing and artificial intelligence, has authorized the potential sale of Bitcoin from its corporate treasury to fund a previously announced share repurchase program, signaling a notable pivot in its digital asset strategy.
Board Authorizes Bitcoin Sales To Fund Buybacks
In a statement released Wednesday, GDC said its board of directors approved the sale of Bitcoin held on its balance sheet in “one or more transactions” to finance a $100 million share repurchase plan. The company clarified that it is not obligated to sell any specific amount of BTC, leaving room for discretion depending on market conditions.
The authorization is tied to a stock buyback program first announced in February, which allows the company to repurchase up to $100 million worth of its shares over a six-month period. Share buybacks are commonly used to return capital to shareholders or signal that management believes the stock is undervalued.
Investors responded positively to the news. GDC shares surged more than 24% on Wednesday, closing at $4.13 apiece, according to Google Finance data. The sharp move higher suggests that markets may be viewing the potential Bitcoin sales as a pragmatic step aimed at stabilizing or supporting the company’s equity.
GD Culture Group share price (Source: Google Finance)
A Reversal From Its Crypto Reserve Ambitions
The decision marks a shift from GDC’s earlier crypto-forward stance. In May 2025, the company announced plans to establish a cryptocurrency reserve that included both Bitcoin and Official Trump Coin (TRUMP), aligning itself with a wave of public companies embracing digital assets as part of their treasury management strategies.
That initiative positioned GDC among firms seeking to leverage Bitcoin not just as a speculative asset, but as a long-term store of value. However, the latest authorization to potentially liquidate some of those holdings suggests a more cautious approach as market conditions have deteriorated.
The move comes amid a broader crypto market downturn that has dragged Bitcoin down to around $60,000 recently, more than 50% below its all-time high above $126,000. This pullback has put pressure on companies that accumulated large Bitcoin positions near peak prices, exposing balance sheets to substantial unrealized losses.
Entering the Treasury Ranks Near the Top
GDC became a major Bitcoin treasury company in September 2025 through an $875 million acquisition of Pallas Capital Holding, which included the purchase of 7,500 BTC. At the time of the deal, Bitcoin was trading between $109,000 and $117,000, placing the company’s entry point near the market’s upper range.
The market reaction was swift and negative. Shares of GDC fell roughly 28% following the announcement of the acquisition.
Despite entering near the cycle’s peak, GDC quickly climbed the corporate Bitcoin rankings. According to data from BitcoinTreasuries, the company is now the 15th-largest publicly listed Bitcoin treasury holder by total BTC. However, the subsequent market decline has left the company down approximately 41% on its BTC investment.
Valuation Pressure and mNAV Discount
At current market prices, GDC’s 7,500 BTC holdings are valued at approximately $517.5 million. Following Wednesday’s rally, the company’s market capitalization stood at around $236.7 million—less than half the value of its Bitcoin reserves.
This disparity is reflected in GDC’s multiple on net asset value (mNAV), which currently sits at 0.42. The mNAV metric, calculated by dividing a company’s market capitalization by the dollar value of its Bitcoin holdings, is widely used to assess Bitcoin treasury firms. An mNAV below 1 indicates that the company is trading at a discount to the value of its crypto assets.
