GD Culture Group's board approved the sale of all 7,500 Bitcoin reserves on Wednesday, currently valued at approximately $510 million, more than double the company's total market capitalization of $210 million. The proceeds will be used to execute the $100 million share repurchase plan announced on February 18, expected to be completed within the next six months. Following the announcement, GDC's stock price surged about 15% during the day, closing at $3.70.
Background of the Liquidation Decision: The Valuation Paradox Revealed by mNAV Discount
The direct trigger for the liquidation was GD Culture's severely low market value-to-net asset value ratio (mNAV). According to The Block data, GDC's mNAV is about 0.5, one of the worst ratios among Bitcoin-holding companies, indicating that the market values the company at only half of its net asset value.
The contradiction behind this ratio is particularly stark: GD Culture's Bitcoin holdings alone exceed the company's total market value, not including the operational value of its AI-driven business. By liquidating Bitcoin and repurchasing shares at below net asset value, the company can lock in definite returns for existing shareholders. In the face of a significant mNAV discount, this move is logically prioritized over holding Bitcoin in hopes of a natural market correction.
Key Data on GD Culture's Liquidation Decision
Bitcoin Holdings: 7,500 coins, valued at approximately $510 million, ranking among the top 15 global corporate Bitcoin treasuries
Company Market Cap: About $210 million, with holdings worth more than twice the stock market value
mNAV Ratio: Approximately 0.5, one of the worst among Bitcoin-holding companies
Buyback Plan Size: $100 million, scheduled from February to August 2026
Stock Price Reaction: surged about 15% intraday after announcement, closing up about 10%, at $3.70
GD Culture's Bitcoin Treasury Strategy and Business Transformation Background
GD Culture Group is headquartered in Nevada, USA, operating through its subsidiaries AI Catalysis and Shanghai Xianzui Technology Co., Ltd., focusing on AI-driven digital human technology and live e-commerce platform services. In May 2025, the company raised up to $300 million through stock sales to build a cryptocurrency reserve strategy, including Bitcoin and TRUMP memecoin. After acquiring Pallas Capital, it officially added 7,500 Bitcoin to its long-term digital asset treasury, ranking among the top 15 global corporate Bitcoin holders.
Financially, as of the first nine months ending September 30, 2025, GD Culture achieved a net income of $9.6 million, a significant improvement from a net loss of $14.1 million in the same period in 2024, indicating a business turnaround.
Nic Puckrin, co-founder of Coin Bureau, pointed out: “Digital Asset Trust (DAT) companies are starting to show signs of pressure from the massive Bitcoin sell-off, which directly impacts their stock performance.” GD Culture’s proactive liquidation decision is a typical case of corporate Bitcoin holders attempting to restore valuation through capital operations when facing long-term stock price discounts.
Frequently Asked Questions
Why did GD Culture choose to liquidate Bitcoin instead of holding?
GD Culture’s mNAV is about 0.5, meaning the market valuation is only half of its net assets. By liquidating Bitcoin and repurchasing shares at a discount, the company can directly create book value for shareholders. Under a severe mNAV discount, this approach offers more operational certainty than waiting for the market to naturally correct the Bitcoin valuation.
What is mNAV, and why is it important for corporate Bitcoin holders?
mNAV (market value to net asset value ratio) measures the premium or discount of a company's stock market value relative to its net assets. For Bitcoin treasury companies, an mNAV above 1 indicates a market premium, while below 1 indicates a discount. GD Culture’s mNAV of 0.5 shows the market is not fully reflecting the book value of its Bitcoin holdings.
What is GD Culture’s core business?
GD Culture Group operates through AI Catalysis and Shanghai Xianzui Technology Co., Ltd., focusing on AI-driven digital human technology and live e-commerce platform services. The Bitcoin treasury is part of the company's 2025 capital allocation strategy; after liquidation, the capital focus will shift to executing the $100 million stock repurchase plan.
