GD Culture to liquidate 7,500 bitcoin hoard for share repurchase as mNAV discount widens
GD Culture Group approved selling its 7,500 bitcoin reserve to fund a $100 million share repurchase program due to a wide market cap-to-net asset value discount.Summary
GD Culture Group's board authorized the liquidation of its 7,500 bitcoin reserve, currently valued around $510 million, to finance a previously announced $100 million share repurchase program over the next six months. This action highlights a significant valuation mismatch, as the company's bitcoin holdings alone surpass its $210 million market capitalization, resulting in a market cap-to-net asset value (mNAV) ratio of about 0.5, one of the worst among corporate bitcoin holders. GD Culture, which operates in AI technology and e-commerce, ranks among the top 15 corporate bitcoin treasuries. The company's shares rose nearly 15% following the announcement. This move comes amid broader market stress noted by experts, where sharp bitcoin sell-offs affect the share prices of companies holding digital assets.
(Source：The Block)