GDC Board Approves Bitcoin Sale to Fund $100 Million Share Repurchase
Hong Kong, 3 May 2025 – The board of directors of GD Culture Group (ticker: GDC), a publicly‑listed holding company with a focus on digital‑marketing and artificial‑intelligence services, authorized the disposal of Bitcoin held in its corporate treasury to finance a share‑buyback programme. The decision marks a reversal of the company’s May‑2025 policy to expand its crypto‑asset reserve, which had included both Bitcoin (BTC) and the Official Trump Coin (TRUMP).
Details of the authorization
- Scope: The board gave management the discretion to sell the Bitcoin holdings in “one or more transactions.” No minimum or maximum volume was stipulated, giving the company flexibility to respond to market conditions.
- Purpose: Proceeds from any Bitcoin sales will be directed toward a share‑repurchase plan announced in February that allows the repurchase of up to $100 million of GDC stock over a six‑month window.
- Market reaction: GDC’s shares rallied more than 24 % by the close of trading on Wednesday, reaching $4.13, according to data from Yahoo Finance.
Context – a volatile crypto environment
The announcement arrives as the broader cryptocurrency market remains under pressure. Bitcoin’s price has slipped below $60 000, roughly half of its all‑time high of $126 000 reached in late 2024. The decline has strained the balance sheets of companies that maintain sizable Bitcoin treasuries, prompting several to reconsider their exposure.
GDC’s cryptocurrency holdings: a brief history
- Acquisition: In September 2025, GDC acquired Pallas Capital Holding for $875 million, a deal that brought roughly 7,500 BTC into its treasury when the digital asset was trading between $109 000 and $117 000. The acquisition initially sparked a 28 % drop in GDC’s share price.
- Current valuation: At today’s Bitcoin price, the 7,500 BTC are worth approximately $517.5 million, more than twice GDC’s market capitalisation of roughly $236.7 million following the recent rally.
- Industry ranking: Data from BitcoinTreasuries places GDC as the 15th largest corporate Bitcoin holder. The company’s multiple on net asset value (mNAV) stands at 0.42 – a metric that compares market capitalisation to the dollar value of Bitcoin assets and is often used to assess the efficiency of treasury‑linked firms.
Analysis
The board’s move to monetise part of its Bitcoin stash underscores a pragmatic shift in strategy. While earlier statements framed crypto assets as a long‑term store of value and a differentiator for GDC, the current market environment has made the assets a more attractive source of liquidity for shareholder returns.
- Capital‑allocation flexibility: By allowing sales “in one or more transactions,” GDC can pace disposals to avoid exacerbating market volatility and can align sales with favourable price windows.
- Shareholder value: A $100 million buyback represents a sizeable commitment relative to the company’s market cap. If executed fully, the repurchase could lift earnings per share and potentially stabilise the stock after its recent surge.
- Risk management: Reducing exposure to a highly volatile asset mitigates downside risk, especially as Bitcoin’s price remains well below its recent peaks.
The decision mirrors actions taken by other crypto‑treasury firms, such as FG Nexus, which recently off‑loaded $14 million of Ether amid similar market pressures.
Key takeaways
- Board approval gives GDC the green light to sell any amount of its 7,500 BTC holdings to fund a $100 million share‑repurchase program.
- Share price reaction: GDC’s stock jumped more than 24 % to $4.13 after the announcement.
- Market backdrop: Bitcoin is trading near $60 000, a 50 % decline from its all‑time high, prompting many corporate treasuries to reassess exposure.
- Treasury valuation: At current prices, GDC’s Bitcoin assets are valued at roughly $517 million, placing the firm at 15th place among corporate Bitcoin holders.
- Strategic shift: The move signals a pivot from a growth‑oriented crypto‑reserve strategy to a more balanced approach that prioritises shareholder returns and risk mitigation.
GDC’s upcoming actions will be closely watched by investors and industry observers as a barometer of how publicly listed companies with significant crypto holdings navigate the ongoing market downturn.
Source: https://cointelegraph.com/news/gd-culture-board-bitcoin-treasury-sales?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
