GameStop, the struggling video game retailer, has made a significant move into the cryptocurrency market by purchasing approximately $513 million worth of bitcoin. The company revealed in a filing that it acquired 4,710 bitcoins, although it didn’t disclose the timeframe for these purchases. This investment marks GameStop’s first bitcoin acquisition since announcing its plans to invest in digital assets in March, following a strategy that companies like Michael Saylor’s MicroStrategy have pioneered. MicroStrategy, an enterprise software firm, is currently the largest corporate holder of bitcoin, and its stock has seen substantial gains as the cryptocurrency’s price has risen, attracting investors looking for exposure to bitcoin without directly buying 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 adapt its brick-and-mortar video game business to the digital age. Shares of the Dallas-based company rose 4.4% in pre-market trading following the announcement. As of February 1, GameStop held $4.78 billion in cash, cash equivalents, and marketable securities. The news comes on the heels of Trump Media and Technology Group, U.S. President Donald Trump’s social media company, announcing plans to raise $2.5 billion to purchase bitcoin. At the time of the announcement, bitcoin was trading down 0.7% at $108,903.
GameStop Invests $513 Million in Bitcoin as Retailer Explores Cryptocurrency
By techgeekwire