Nasdaq-listed digital asset and technology firm GD Culture Group Limited has received board approval to sell part of its 7,500 Bitcoin holdings to help finance a previously announced $100 million share repurchase program, according to company filings and market reports.
After disclosing the authorization, GDC shares climbed sharply, reflecting investor optimism about the company’s strategic pivot to boost equity value.
Board Authorizes Flexible BTC Sales to Support Buybacks
GD Culture’s board of directors has approved the sale, exchange or other disposition of Bitcoin from its 7,500-coin reserve to underwrite the company’s $100 million share buyback initiative, originally disclosed on February 18, 2026. Management has discretion to execute the sales in one or more transactions and can modify, suspend or halt the plan based on market conditions and corporate interests.
Proceeds from the Bitcoin sales are expected to fund repurchases of the company’s common stock and cover related costs, including brokerage commissions, fees and taxes. GD Culture emphasized it is not obligated to sell any specific amount of BTC as part of the authorization.
Strategic Context: Weak Stock and Crypto Price Pressure
GD Culture’s Bitcoin holdings, acquired through a December 2025 share exchange with Pallas Capital Holding, total 7,500 BTC — a reserve valued at roughly $497 million at current market prices, though representing an unrealized loss relative to cost.
The decision to deploy part of its digital asset treasury toward buybacks comes as the company’s stock has fallen sharply— down approximately 70 % from its September 2025 peak — reflecting broader market pressures on crypto-linked equities.
Industry analysts note that GDC’s BTC holdings alone dwarf its market capitalization, creating a valuation mismatch that may have influenced the move to allocate value back into its shares.
Market Reaction and Broader Implications
News of the board authorization lifted GDC shares, which saw gains of around 7–15 % in early trading, as investors interpreted the buyback strategy as a signal of management’s confidence and a tool to support shareholder returns.
The buyback program — slated to run over the next six months — aligns with efforts by Bitcoin-treasury companies facing valuation stress to reassess how crypto holdings are used in capital allocation strategies.
GD Culture’s pivot highlights a growing trend among publicly traded firms that hold significant Bitcoin reserves: balancing long-term digital asset strategies with near-term shareholder value measures amid market uncertainty and crypto price headwinds.
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