In brief
- GD Culture earned board approval to sell some of its 7,500 Bitcoin in order to fund a $100 million share buyback plan.
- Shares rose 15% amid the news, but are still down 60% from its 52-week high.
- The firm accumulated the 7,500 BTC as part of an acquisition last fall.
Publicly traded artificial intelligence and livestreaming firm GD Culture approved the sale of some of its 7,500 Bitcoin, or around $518 million worth, as part of its effort to fund a new share repurchase program, the firm announced on Wednesday.
The program, approved earlier this month by the firm’s board of directors, authorizes it to repurchase up to $100 million in GD Culture shares (GDC) intermittently over the next six months.
“The board’s authorization permits the company to execute the Bitcoin sales in one or more transactions, from time to time, as management determines to be in the best interests of the company and its shareholders,” the firm said in a statement.
“Proceeds from the Bitcoin sales are expected to be used to fund repurchases of the company’s common stocks pursuant to the share repurchase program.”
While the firm is authorized to sell all of its Bitcoin holdings, it is under “no obligation” to sell any specific amount and the program can be modified or discontinued at any time, according to its announcement.
GD Culture picked up the 7,500 BTC last September when it entered into a share agreement to acquire Pallas Capital and its holdings. Now it can start to sell off its treasury if it wishes to, though its total holdings are worth around five times more than the approved amount for share repurchases.
Shares in the firm are up around 21% following the news, recently trading at $4.04 but have still fallen more than 10% in the last month.
It’s not the first crypto treasury to offload some of its crypto assets in order to fund share repurchase agreements. In October, Ethereum treasury firm ETHZilla sold around $40 million in ETH to help buy back shares as its stock traded below the value of its net assets.
Other firms have recently sold Bitcoin to fund other initiatives as well. Riot Platforms dumped $200 million in BTC during November and December amid what analysts believe is a bid to fund its AI initiatives.
Earlier this month publicly traded miner Cango did the same, parting ways with $305 million worth of the top crypto asset.
A representative for GD Culture did not immediately respond to _Decrypt’s _request for comment.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
BTC drops below 70,000 USDT
Gate News bot message, Gate market display, BTC drops below 70,000 USDT, current price 69,986.8 USDT.
CryptoRadarJust Now
Businesses are increasing Bitcoin accumulation, leading to a tightening of market supply
The accumulation of Bitcoin (BTC) by companies is rising, significantly impacting the cryptocurrency market. Public firms are buying BTC faster than miners can produce it, reducing supply on exchanges and potentially increasing price volatility. Companies like Metaplanet follow MicroStrategy's lead in holding Bitcoin as a long-term asset. The approval of Bitcoin ETFs and growing institutional interest further boost market demand, suggesting a positive long-term outlook despite potential price fluctuations.
TapChiBitcoin11m ago
Metaplanet establishes two subsidiaries with plans to invest 4 billion yen to develop the Japanese Bitcoin ecosystem
Metaplanet announced the establishment of two subsidiaries on March 12, namely Metaplanet Ventures and Metaplanet Asset Management. The former will invest 4 billion yen to support the Japanese Bitcoin ecosystem, launching an incubator and funding programs; the latter is positioned as a digital credit and Bitcoin capital market platform, aiming to connect Asian and Western capital markets. The first investment is a maximum of 400 million yen in JPYC.
GateNews43m ago
VanEck and Basic Capital collaborate to include digital asset ETFs in U.S. corporate 401(k) retirement plans
Asset management firm VanEck partners with fintech company Basic Capital to include some digital asset ETFs in its 401(k) retirement plan, providing American retirement savers with an indirect investment opportunity in cryptocurrencies, in line with the restrictions previously withdrawn by the U.S. Department of Labor.
GateNews47m ago
Bitcoin Facing $75K Sell Wall Despite Whale and Institution Buy-Ins, Here’s Why - BTC Hunts
Bitcoin struggles to break the $75K resistance despite increased whale investments and institutional buy-ins. Current trading is at $70,525, influenced by market uncertainty related to global events and upcoming economic announcements.
BTCHUNTS1h ago
Indian police arrest suspect involved in GainBitcoin Ponzi scheme at Mumbai airport
Gate News Report, March 11 — India's Central Investigation Bureau (CBI) announced the arrest of Darwin Labs co-founder and CTO Ayush Varshney at Mumbai Airport on suspicion of involvement in the GainBitcoin Ponzi scheme. It is reported that Varshney was attempting to leave India at the time. Investigations revealed that the scheme was operated by Variabletech Pte. Ltd., which attracted investors by promising high returns on crypto investments. Law enforcement officials accused Darwin Labs of developing and deploying critical technological infrastructure for the scheme, including the MCAP cryptocurrency token and ERC-20 smart contracts. Additionally, Darwin also provided technology for GBMiners.com Bitcoin mining platform, BitCoin Payment Gat
GateNews1h ago
