GD Culture Group has received an approval from its board of directors for selling part of its reserve of 7,500 bitcoins to help finance a previously announced stock repurchase programme, the company said.
The approval will help the management decide when and how to carry out the bitcoin sales. GD Culture emphasised that it is not obligated to sell any fixed amount and can modify or halt the plan at any time.
GDC faced a sharp decline in the stock price as the price of bitcoin has plunged in recent months. Notably, the board approved a $100 million repurchase programme earlier this month.
The company’s bitcoin holdings are currently worth about $497 million, according to data from CoinGecko. That value has dropped over time, with GD Culture carrying an unrealised loss of $344 million, down nearly 41% from its total acquisition cost of $841.5 million.
The company got its large bitcoin reserve through the acquisition of Pallas Capital Holding. The move was, at the time, financed through the issuance of 39.18 million shares.
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