GD Culture Group reports 211.8 million USD Bitcoin loss, shares diluted 18-fold

GD Culture Group reported a 211.8 million USD unrealized Bitcoin loss for the first half of 2026, with its share count increasing to over 18 times its year-end level. The Nasdaq-listed company held 7,500 BTC, originally costing 842 million USD, with a fair value of 451.2 million USD as of June 30, according to its quarterly filing on August 14. This loss represented approximately 97.9% of GD Culture's total net loss of 216.2 million USD for the same period. The loss was attributed to fair-value accounting and did not involve cash outflows or sales of the Bitcoin reserve. GD Culture sold about 1.08 BTC for short-term trading, realizing a loss of 28,799 USD. The 7,500 BTC reserve was acquired through the September 2025 purchase of Pallas Capital Holding. The company raised liquidity through equity sales, ending June with 4,162,500 shares outstanding after a reverse split. The increase of 3,933,222 shares was primarily due to cash issuances, with 99.65% of the increase coming from sales through its at-the-market program, totaling about 42 million USD net. GD Culture reported 7.2 million USD in operating bank accounts and 36.6 million USD in working capital, including receivables from ATM proceeds. Management stated it had sufficient liquidity to meet obligations for at least 12 months.