GameStop, the well-known video game retailer, has announced its initial investment in bitcoin, purchasing 4,710 bitcoins valued at approximately $512.6 million. This marks the company's strategic entry into cryptocurrency holdings amid a recent surge in bitcoin prices.
The acquisition corresponds with bitcoin trading near $108,837 per coin as of May 28, 2025. The cryptocurrency recently reached an all-time high close to $112,000, driven by easing global trade tensions and increasing interest in alternative assets. GameStop's move follows the trend set by other major corporations embracing bitcoin as a store of value.
Despite this significant investment, GameStop's shares declined by 3% during morning trading but remain up about 8% year-to-date. The company reported a cash reserve of $4.76 billion as of February 1, 2025, reflecting a strong liquidity position to support such purchases.
GameStop first indicated its intention to invest in cryptocurrencies in February 2025 and confirmed its plans in late March without setting a cap on potential bitcoin acquisitions. This initiative aligns with CEO Ryan Cohen's broader strategy to revitalize the company by diversifying assets and improving profitability.
By emulating industry leaders like MicroStrategy, which has become the largest corporate holder of bitcoin through multi-billion-dollar purchases, GameStop signals a commitment to integrating digital currencies into its financial framework. Cohen’s leadership continues to focus on streamlining operations to return GameStop to sustained profitability while embracing new technological trends.
