GameStop Makes Significant Bitcoin Investment
GameStop has purchased bitcoin worth approximately $513 million, marking a significant move into the cryptocurrency market. The video game retailer revealed in a filing that it acquired 4,710 bitcoins, although it did not disclose the timeframe for these purchases. At the time of the announcement, bitcoin was trading down 0.7% at $108,903.
This investment represents GameStop’s first bitcoin purchase since announcing its plans to invest in digital assets in March. The company is following a strategy similar to that of Michael Saylor’s MicroStrategy, an enterprise software company that has become the largest corporate holder of bitcoin. MicroStrategy’s stock has seen substantial gains in tandem with the rising price of bitcoin, attracting investors looking for exposure to the digital asset without directly investing in it.
For GameStop, which was at the center of the 2021 meme-stock frenzy, this move could potentially boost investor interest at a time when the company is struggling to revitalize its brick-and-mortar video game business in the digital age. Shares of the Dallas, Texas-based company were 4.4% higher in pre-market trading following the announcement.
As of February 1, GameStop held $4.78 billion in cash, cash equivalents, and marketable securities, providing the company with significant financial flexibility. The announcement comes on the heels of Trump Media and Technology Group, U.S. President Donald Trump’s social media firm, revealing plans to raise $2.5 billion to purchase bitcoin.
The investment in bitcoin reflects a broader trend of companies exploring cryptocurrency as part of their financial strategies. GameStop’s decision to enter the bitcoin market demonstrates its efforts to adapt to changing financial landscapes and potentially attract new investors.
