GameStop buys over $500M worth of bitcoin in 1st crypto investment
GameStop's Bitcoin bet is an excellent move: Kip Herriage
Vertical Research Advisory managing partner Kip Herriage discusses GameStop adding Bitcoin as a treasury reserve asset on 'Making Money.'
GameStop is investing in bitcoin.
On Wednesday, the video game retailer disclosed an acquisition of 4,710 bitcoin.
It marks GameStop’s first time buying the cryptocurrency following the company revising its investment policy to include bitcoin as a "treasury reserve asset."
A GameStop store in New York City on Monday, March 4, 2024. (Shelby Knowles/Bloomberg via Getty Images / Getty Images)
The 4,710 bitcoin that GameStop bought had a value of $505 million as of Wednesday.
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The purchase comes nearly two months after the video game retailer completed a private offering of 0.00% convertible senior notes that fetched $1.48 billion in net proceeds.
GameStop said in a Securities and Exchange Commission filing about the offering that the net proceeds would be used for "general corporate purposes, including the acquisition of Bitcoin in a manner consistent with the Company’s Investment Policy."
A visual representation of the digital cryptocurrency Bitcoin is on display on Nov. 12, 2024 in Paris. (Photo illustration by Chesnot/Getty Images / Getty Images)
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In late March, the video game retailer revised its investment policy so that a "portion of our cash or future debt and equity issuances may be invested in Bitcoin." That move was unanimously approved by its board.
"We have not set a maximum amount of Bitcoin we may accumulate, and may sell any Bitcoin we may acquire," GameStop said at the time.
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The video game retailer, which operated over 3,200 stores globally at the beginning of February, has been struggling in recent years.
A GameStop store in New York City on Monday, March 4, 2024. (Shelby Knowles/Bloomberg via Getty Images / Getty Images)
Its market capitalization was approximately $14.3 billion as of Wednesday.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GME | GAMESTOP CORP. | 31.20 | -3.83 | -10.93% |
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