GameStop Stock (GME) Crashes 18% as Company Raises $1.75 Billion for Bitcoin Purchases
The stock of GameStop (GME) is down 18% on reports the video game retailer plans to raise $1.75 billion to buy more Bitcoin(BTC).
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As its video game sales have declined, GameStop has taken a page from Michael Saylor’s company Strategy (MSTR) and moved to become a serial acquirer of Bitcoin. Along with its recent financial results, GameStop disclosed that it bought 4,710 Bitcoins between May 3 and June 10 of this year, a stake worth just over $500 million.
Proceeds from the latest equity raise will be used to buy even more Bitcoin, the company said in a news release. GameStop’s investment policy is to add BTC as a treasury reserve asset. The company first announced its Bitcoin treasury strategy in March of this year.
Stocks Too?
While management, led by CEO Ryan Cohen, has said GameStop is focused on acquiring Bitcoin, they have also said they may invest in stocks as well. GameStop’s latest financial results were mixed, with earnings per share (EPS) of $0.09 beating Wall Street forecasts but revenue of $732.4 million falling short of consensus.
News of the latest equity raise has sent GME stock down sharply on June 12. Many analysts, and some shareholders, have questioned the company’s pivot to becoming a serial acquirer of BTC. So far in 2025, GameStop’s share price has declined a total of 26%.
Is GME Stock a Buy?
Currently, only one Wall Street analysts offers a rating and price target on GME stock. So instead, we’ll look at the stock’s three-month performance. As one can see in the chart below, GameStop’s share price has gained 30% over the last 12 weeks.
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