GD Culture Group has received board approval to sell a portion of its bitcoin holdings to help finance a previously announced stock repurchase program, as the company navigates a sharp decline in both its share price and the value of its digital asset reserves.
The firm currently holds 7,500 bitcoins, valued at roughly 497 million dollars based on recent market prices. However, the company is carrying an unrealized loss of approximately 344 million dollars compared with its total acquisition cost of about 841.5 million dollars. The decline mirrors the broader downturn in bitcoin’s price after it peaked above 126,000 dollars last year.
Earlier this month, GD Culture’s board authorized a 100 million dollar share buyback program aimed at supporting the company’s stock. Management now has discretion to determine the timing and size of any bitcoin sales used to fund the repurchase initiative. The company stated that it is not obligated to sell a specific amount of bitcoin and retains flexibility to modify or suspend the plan depending on market conditions.
GD Culture accumulated its bitcoin treasury through the acquisition of Pallas Capital Holding, a transaction financed by issuing more than 39 million shares. The strategy positioned the company among a group of publicly traded firms that adopted bitcoin as a treasury reserve asset during periods of strong market performance.
As bitcoin’s price has retraced from record highs, several companies with significant crypto reserves have reassessed their capital allocation strategies. Some have reduced holdings to strengthen balance sheets, fund operational expansion or pivot toward other business initiatives. Recent examples in the sector include firms reallocating capital from digital assets to infrastructure projects tied to artificial intelligence and data centers.
GD Culture’s shares rose modestly during Wednesday trading, gaining about 7 percent as bitcoin rebounded above 67,000 dollars. Despite the daily increase, the stock remains down nearly 70 percent from its September 2025 peak, reflecting investor concerns over volatility in crypto markets and the impact of unrealized losses on corporate balance sheets.
Corporate bitcoin treasury strategies gained popularity during the previous bull cycle, when rising prices boosted reported asset values and attracted investor interest. However, the subsequent price correction has highlighted the risks associated with holding large, concentrated crypto reserves.
By initiating a share repurchase funded in part by potential bitcoin sales, GD Culture appears to be balancing its exposure to digital assets with efforts to stabilize shareholder value. The approach underscores the evolving role of bitcoin on corporate balance sheets, particularly during periods of heightened market volatility and shifting investor sentiment.
