GD Culture Group has secured board approval to sell a portion of its bitcoin reserves to finance a previously announced share repurchase program, marking a significant shift in strategy for one of the more prominent corporate bitcoin holders. The decision comes after a prolonged slump in both the company’s stock price and the broader crypto market.
The firm currently holds approximately 7500 bitcoins, valued at around 497 million dollars based on recent market prices. However, those holdings are sitting on a substantial unrealized loss. The company originally acquired its bitcoin at a total cost of roughly 841.5 million dollars, leaving it with an unrealized deficit of about 344 million dollars, or close to 41 percent below acquisition value.
Earlier this month, GD Culture’s board authorized a 100 million dollar stock repurchase program in response to mounting pressure from shareholders as the company’s share price declined sharply. Since peaking in September 2025, the stock has fallen by nearly 70 percent, broadly mirroring bitcoin’s retreat from its record high above 126000 dollars. Although shares rose about 7 percent during Wednesday trading alongside a modest recovery in bitcoin toward the 67000 dollar level, investor confidence remains fragile.
Under the newly approved plan, management has discretion over the timing and size of any bitcoin sales. The company emphasized that it is not obligated to liquidate a specific amount and retains flexibility to adjust or suspend the program depending on market conditions. This approach suggests an attempt to balance capital management with the volatility inherent in digital asset markets.
GD Culture amassed its bitcoin holdings through the acquisition of Pallas Capital Holding, a transaction that was financed through the issuance of more than 39 million shares. At the time, the move was viewed as a bold treasury strategy aligned with the growing trend of public companies adopting bitcoin as a reserve asset. However, the subsequent downturn in crypto prices has exposed the risks associated with concentrated digital asset exposure on corporate balance sheets.
The company is not alone in rethinking its bitcoin strategy. In recent days, other crypto focused firms have reduced or fully divested their bitcoin holdings to reallocate capital. Some have shifted resources toward artificial intelligence infrastructure and data center expansion, signaling a broader reassessment of capital priorities across the sector.
For GD Culture, the planned sale of bitcoin represents both a defensive maneuver and a signal to the market that management is focused on stabilizing shareholder value. Whether the buyback will materially support the stock depends largely on future bitcoin price performance and the company’s ability to restore investor confidence. The move underscores how closely corporate treasury strategies tied to digital assets remain linked to broader market cycles.
