Bitcoin Treasury Firm GD Culture May Sell Bitcoin to Buy Back Shares

▲ Bitcoin (BTC), U.S. Dollar (USD)

More companies are selling the Bitcoin (BTC) they hold in order to support their stock prices. GD Culture, an artificial intelligence and live-streaming company, has drawn market attention after deciding to liquidate part of its substantial Bitcoin holdings to fund a $100 million share buyback program.

According to cryptocurrency media outlet Decrypt on February 25 (local time), GD Culture’s board approved a program earlier this month to repurchase up to $100 million worth of its shares (GDC) intermittently over the next six months. The company announced Wednesday that it will sell a portion of its 7,500 Bitcoin holdings to finance the buyback. The total value of GD Culture’s Bitcoin holdings currently stands at approximately $518 million—more than five times the approved buyback amount.

The Bitcoin was secured during the company’s acquisition of Pallas Capital in September last year. The company stated that management has the flexibility to dispose of the Bitcoin in one or multiple transactions at its discretion, and that all proceeds from the sales will be used exclusively for the share repurchase program. However, it added that there is no obligation to sell a specific amount and that the program may be modified or suspended at any time.

Following the news that the company would enhance shareholder value through Bitcoin sales, GD Culture’s stock surged nearly 21% intraday to trade at $4.04, showing an immediate market reaction. Nevertheless, the stock remains down more than 10% over the past month and is still roughly 60% below its 52-week high, prompting some analysts to view the move as a desperate measure to prop up the share price.

Such cases of companies monetizing Bitcoin or altcoins to repurchase shares or invest in new businesses have become increasingly notable. In October last year, Ethereum treasury firm ETHZilla sold $40 million worth of Ethereum (ETH) to defend its stock price. Mining companies Riot Platforms and Cango also disposed of $200 million and $350 million worth of Bitcoin, respectively, to fund new initiatives including artificial intelligence ventures.

Meanwhile, Goldman Sachs data shows that short interest in crypto-related stocks such as Strategy (MSTR) and Coinbase (COIN) stands at 14% and 10% of their respective market capitalizations, reflecting divided investor sentiment. Recently, Bitcoin fell below $63,000 before rebounding sharply to around $69,000, triggering a large-scale short squeeze—buying pressure caused by the liquidation or covering of short positions—highlighting continued market volatility.

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