The stock of GD Culture Group (Nasdaq: GDC) soared by nearly 15% on Wednesday after the company’s board of directors approved the sale of its 7,500 bitcoin holdings, valued at approximately $510 million, to fund a $100 million stock buyback program.
Shares have since cooled slightly, trading up about 10% on the day. The buyback program, announced on February 18, is expected to be executed over the next six months, with management retaining flexibility to sell bitcoin in one or more transactions as market conditions dictate.
Valuation Gap Highlights Strategic Move
The decision to sell off a portion of its bitcoin holdings underscores a significant valuation gap: GD Culture’s bitcoin alone exceeds its total equity value. With a market capitalization of around $210 million, the company’s market cap-to-net asset value ratio (mNAV) is a striking 0.5, one of the lowest among corporate bitcoin holders.
GD Culture, based in Nevada, operates through subsidiaries AI Catalysis and Shanghai Xianzhui Technology Co., focusing on AI-driven digital human technology and live-streaming e-commerce. The company’s stock has lost about two-thirds of its value since last year, largely tracking the decline of bitcoin from its record highs above $126,000.
Strategic Acquisitions and Treasury Management
The company’s substantial bitcoin holdings are a result of the 2025 acquisition of Pallas Capital Holding, partly financed through the issuance of 39.18 million shares. Earlier in 2025, GD Culture sold up to $300 million in stock to fund a broader crypto treasury strategy, including the purchase of bitcoin and the TRUMP memecoin.
For the nine months ending September 30, 2025, GD Culture reported a net income of $9.6 million, a significant turnaround from a $14.1 million loss in 2024. Despite the positive earnings, the company’s shares have remained under pressure due to the broader sell-off in the cryptocurrency market.
Corporate Bitcoin Trends
GD Culture’s move to liquidate its bitcoin holdings is part of a broader trend among corporate bitcoin holders. Bitdeer, for instance, recently sold its entire BTC reserve to fund AI data center expansion, while Riot Platforms reduced its holdings late last year.
As of publication, GD Culture shares were trading up about 10% to $3.70, reflecting a modest rebound in the price of bitcoin to near $69,000. Other crypto-exposed stocks are also rallying in tandem with Bitcoin’s rebound, with Coinbase (COIN) surging over 13%, MicroStrategy (MSTR) over 8%, and Robinhood (HOOD) over 6%.
Looking Ahead
The strategic move by GD Culture to sell its bitcoin and fund a substantial stock buyback program highlights the company’s commitment to bolstering shareholder value amid market volatility. As the cryptocurrency market continues to navigate its current downturn, such strategic financial maneuvers could set the stage for a stronger recovery in the coming months.
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