GD Culture Moves to Liquidate Bitcoin Treasury

GD Culture Group is preparing to sell from its large Bitcoin treasury to fund a $100 million share repurchase plan after its stock fell sharply and its valuation gap widened.

Key Takeaways

• GD Culture’s board approved the sale of its 7,500 Bitcoin holdings to help fund a $100 million share buyback.
• The company’s Bitcoin stash is valued around $500 million, far above its roughly $210 million market cap, creating a steep valuation mismatch.
• Shares jumped nearly 15% after the news and were still up about 10% later, with reports citing trading near $3.70.
• The plan gives management flexibility to sell Bitcoin in one or more transactions and to adjust, pause, or suspend sales based on market conditions.

What Happened?

GD Culture Group, a Nasdaq listed company trading under the ticker GDC, saw its shares surge on Wednesday after its board authorized the sale of its 7,500 Bitcoin reserve. The company said the proceeds would support a previously announced $100 million share repurchase program that was disclosed on Feb. 18 and is expected to run over the next six months.

Why GD Culture’s Bitcoin Sale Stands Out?

The most striking detail is the scale of the treasury compared with the business valuation. Multiple reports put the 7,500 BTC value at roughly $497 million to $510 million, more than double GD Culture’s market capitalization of about $210 million. That disconnect has helped push the company’s market cap to net asset value ratio to around 0.5, which some data trackers have described as among the lowest for corporate Bitcoin holders.

This matters because it suggests the market is valuing the company at less than the value of its Bitcoin alone, before assigning any value to its operating subsidiaries.

How the Buyback Is Expected to Work?

GD Culture has framed the move as a way to redeploy capital into its own stock at a time when management believes the shares are undervalued. The company said it can sell Bitcoin in one or more transactions depending on market conditions. It also emphasized it is not obligated to sell a specific amount and can alter or suspend the plan.

The buyback itself is set at $100 million and is expected to be executed over the next six months. Share repurchases often aim to reduce the share count and potentially lift earnings per share, while also signaling confidence to investors.

Pressure on Corporate Bitcoin Treasuries

The decision comes as Bitcoin linked corporate treasuries face fresh stress during a broader crypto selloff. “Digital asset treasuries (DATs) are beginning to show signs of stress from the sharp sell off in bitcoin, which is affecting their share prices,” Coin Bureau co founder Nic Puckrin told The Block earlier this week.

One report also cited a steep slide in GD Culture’s stock, describing a roughly 70% drop since September 2025. Another noted the stock has lost about two thirds of its value since last year, with the decline broadly tracking Bitcoin’s pullback from record highs above $126,000. Some details in the source coverage present timing inconsistencies, but the central point is clear: falling crypto prices and falling equity prices have combined to intensify investor pressure.

CoinLaw’s Takeaway

I found this move to be a blunt but practical admission that public markets punish uncertainty. In my experience, when a company’s Bitcoin stash is worth more than the entire company, investors stop listening to vision talk and start demanding action. Using Bitcoin as a liquidity tool for a share buyback is not just financial engineering, it is a signal that management would rather bet on its own stock than ride out more crypto volatility. If GD Culture executes cleanly and communicates each step, it could narrow the valuation gap. If it hesitates, the market may keep treating the treasury like a risk, not a strength.

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