GameStop took a big step into the cryptocurrency market this week, announcing that it has acquired over $500 million worth of Bitcoin.
The move comes after GameStop Corp. announced in March that it plans to raise $1.3 billion by offering special bonds that can later be converted into stock. The company says it will use the money for general business needs, which now obviously include buying cryptocurrency. This also follows GameStop’s decision to allow Bitcoin as part of its financial reserves this year.
Despite this week’s high-profile purchase, the retailer’s stock tumbled nearly 10% in early trading reports posted Wednesday morning.
The company confirmed it had bought 4,710 Bitcoins at an average price of $108,837, totaling $512.6 million.
Gamestop’s decision to invest in Bitcoin comes as the world’s largest cryptocurrency hits record highs, trading just shy of $112,000 per Bitcoin in recent days.
This strategic move aligns GameStop with other corporate bitcoin holders, most notably software firm MicroStrategy—recently rebranded as Strategy—which famously converted billions of dollars from its balance sheet into Bitcoin, positioning itself as one of the leading crypto holders in the tech industry.
For GameStop, the move is the latest in CEO Ryan Cohen’s ongoing efforts to transform the legacy video game retailer into a leaner, more modern, and adaptable company. Since taking the reins, Cohen has prioritized cost-cutting, digital transformation, and shedding underperforming assets.
However, as previously reported by The Dallas Express, Cohen has been promising improvements for the company’s profit line since 2023, with rocky results.
In an effort to save money and keep up with its modern competitors, the company announced in September of 2024 that it would be closing hundreds of its brick-and-mortar shops across the country, per The New York Post.
Still, Wall Street appears unconvinced. GameStop’s shares fell 9% after the announcement of this week’s Bitcoin buy, though they remain up roughly 8% on the year overall. As of its April annual report, the company held nearly $4.8 billion in cash reserves, giving it room to maneuver even with their shares sliding.
Whether the move succeeds or not, one thing is clear: GameStop’s revival strategy has shifted beyond video games. It is now based on a $500 million bet on Bitcoin.