GD Culture to Sell 7,500 Bitcoin to Address Valuation Gap and Fund Buyback
Key Facts
- •GD Culture Group (GDC) board approved the sale of its 7,500 bitcoin holdings.
- •The proceeds from the sale will fund a $100 million share buyback program.
- •Shares of GDC surged nearly 15% following the announcement.
The board of directors of GD Culture Group (GDC) has officially approved the liquidation of its entire 7,500 Bitcoin treasury to finance a $100 million share repurchase program. This strategic pivot comes as the company grapples with a market cap-to-net asset value (mNAV) ratio of approximately 0.5, one of the lowest among corporate Bitcoin holders. This ratio indicates that GDC's stock is trading at a significant discount relative to its underlying assets. By selling its BTC holdings to fund buybacks, the company aims to bridge this valuation gap and enhance shareholder returns. While GDC shares surged 15% on the news, the large-scale liquidation could introduce downward pressure on the BTC/USD exchange rate. Market participants are closely watching whether this move will successfully recalibrate the company's market valuation.
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