The council approves the sale of bitcoins

GD Culture Group (GDC), a publicly traded company specializing in artificial intelligence and livestreaming, has obtained approval from its board of directors to sell part of its 7 500 bitcoins.

The current value of GDC's reserve #bitcoin $BTC is around 510 to 518 million dollars according to recent market estimates, while the group's market capitalization does not exceed 236.7 million dollars.

The company had built up this cash reserve in September 2025 during the buyback of #PallasCapitalHolding , operation financed notably by the issuance of nearly 39.18 million shares. At the time, bitcoin was trading between 109,000 and 117,000 dollars, well above current market levels.

The board of directors has authorized the sale of the 7,500 $BTC in one or more transactions, without setting a minimum amount to be sold.

A latent loss of 344 million

This bet on bitcoin has proven costly for #gdc . With a total acquisition cost estimated at around 841.5 million dollars for its 7,500 $BTC , the company currently shows a latent loss of about 344 million. This represents a decline of nearly 41% on this massive crypto investment.

GDC is thus faced with the brutal reality of volatile markets: its 'bitcoin treasury' strategy has turned against it in less than a year.

Despite this financial setback, GDC remains among the largest global institutional holders, ranking fifteenth according to #BitcoinTreasuries . However, pressure is now mounting to restore shareholder confidence after this major depreciation.

GDC's stock rebounds, but remains fragile

The announcement of the program had an immediate effect on the stock price. This Wednesday, GDC's stock soared by up to +24% to temporarily reach 4.13 dollars according to Yahoo Finance. Other sources report an increase ranging from +7% to +21% in the day following the official announcement.

However, this surge masks a more nuanced reality: the stock is still down about 70% from its peak reached last September. Over the last rolling month, it still shows a decline of more than 10%. Investors remain cautious despite this temporary resurgence of interest.

When share buybacks take precedence over crypto

The strategic choice made by GDC – selling bitcoins to support its own action – reflects a notable change in the management of crypto treasuries among listed companies.

The board approved in February a program that could go up to 100 million dollars over six months to buy back its own shares on the market. This operation aims to support the stock price and reassure shareholders after several quarters marked by high volatility and significant losses related to the bitcoin bet. For the record, GDC recorded a net profit of 9.6 million dollars during the first nine months ending September 30, 2025 – a marked recovery after a net loss of more than 14 million in 2024.

At coindesk.com it is noted that this trend is not isolated: Bitdeer sold all its bitcoins this week to finance its transition to AI data centers while Riot Platforms also reduced its exposure at the end of 2023. The context therefore seems favorable for internal arbitrage between digital assets and support for equity.

Bitcoin purchased at the peak

The massive acquisition made last September occurred while bitcoin was trading at historically record levels between 109,000 and 117,000 dollars per unit.

What the upcoming indicators say

The market will monitor the first effective sale of bitcoins by GD Culture, authorized to finance a share buyback of 100 million dollars over six months starting February 18, although no specific timeline or minimum amount has been confirmed at this stage.