GameStop Corp. (GME) Slides as Investors React to $500 Million Bitcoin Purchase
GameStop Corp. (NYSE:GME) announced on Wednesday that it has officially purchased 4,710 bitcoins, valued at over $512 million, marking the company's first move into cryptocurrency. The purchase mirrors a strategy popularized by MicroStrategy and represents the video game retailer’s shift toward digital asset investment.
The acquisition was made at an average price of $108,837 per bitcoin. GameStop Corp. (NYSE:GME) had initially signaled its interest in adding crypto to its balance sheet earlier this year, with CNBC reporting the plan in February. The company later confirmed in March that there was no cap on how much bitcoin it might acquire.
Despite the scale of the investment, GameStop Corp. (NYSE:GME) shares fell by 10.9% on Wednesday. This decline came after the company revealed it would be moving away from its traditional video game retail business to focus more on cryptocurrencies. According to a March SEC filing, GameStop aims to raise $1.3 billion through convertible notes as part of the shift. The filing noted that the strategy is designed to maintain liquidity for daily operations while seeking higher investment returns.
Vitaliy Shtyrkin, chief product officer at crypto payment processor B2BINPAY, believes that Bitcoin might not be the perfect solution GameStop expects. He pointed out that Bitcoin’s well-known price swings, which attract Strategy investors, bring additional risks for GameStop’s investors. He also noted that the company’s stock is already struggling due to falling video game sales. He made the following comment:
"Bitcoin is exciting for a loyal investor base, but it distracts from core fundamentals: if crypto prices drop, GameStop may easily end up in a double-bind."
GME has surged by nearly 2% since the start of 2025.
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