In a major strategic shift, GameStop has officially confirmed the purchase of 4,710 Bitcoin, marking its first major foray into cryptocurrency. The announcement was made via the company’s official X (formerly Twitter) account on May 28, following weeks of speculation about the retailer’s alternative investment strategy.
GameStop Invests Over $500 Million in BTC
Although GameStop did not disclose the exact purchase date or price, the 4,710 BTC would be worth approximately $513 million based on current market prices with Bitcoin trading at $109,019.
“This is GameStop’s first publicly acknowledged Bitcoin acquisition,” the company stated, aligning with its March 2024 announcement to diversify into digital assets.
Funded Through Convertible Notes Offering
The BTC investment is being funded through debt, specifically a $1.3 billion convertible notes offering announced earlier this year.
“We aim to enhance shareholder value by diversifying our balance sheet into digital assets,” GameStop previously noted in regulatory filings.
This move follows a growing trend of corporate interest in Bitcoin as a hedge and strategic reserve asset, joining the likes of Tesla, MicroStrategy, and Block (formerly Square).
Stock Reacts to Crypto Ambitions
Speculation around the Bitcoin purchase has already been reflected in GameStop’s (GME) stock price, which has experienced significant gains in recent months:
- March: GME surged 12% following confirmation of crypto investment intentions.
- February: Rumors drove an 18% price spike.
- May 27 closing price: $35
- Pre-market (May 28): $36.30
- 30-day performance: +30%
- Year-to-date gain: 10%
“GameStop’s crypto pivot appears to be energizing retail and institutional investors alike,” said analysts monitoring the stock.
Part of a Broader Alternative Asset Strategy
This bold Bitcoin entry aligns with GameStop’s larger pivot into digital markets, driven by evolving consumer trends and investor expectations. Although the company has yet to comment directly beyond its X announcement, the confirmation ends months of market rumors.
With 4,710 BTC now on the books, GameStop is officially part of the growing list of publicly traded firms with Bitcoin treasury assets.