GameStop, the American video game and electronics retailer, has officially confirmed its first foray into the cryptocurrency world with the acquisition of 4,710 Bitcoin ($BTC).
The news, disclosed via the company’s X account on 28 May, places GameStop among a growing list of publicly listed firms that are using Bitcoin as a treasury reserve asset.
While the company’s announcement did not include the exact date of the purchase or the average price per coin, current valuations estimate the acquisition at around $513 million. Bitcoin was trading at roughly $108,800 at the time of the disclosure.
GameStop’s filing with the US Securities and Exchange Commission (SEC), submitted the same day as a Form 8-K, provided little additional detail, echoing the X post’s minimalism.
The move follows earlier signals from GameStop’s leadership. In March, the firm had publicly expressed intentions to venture into Bitcoin investments. It announced a $1.3 billion convertible notes offering to help fund the purchase, which later increased to $1.5 billion.
According to the SEC filing, the debt consisted of zero-interest convertible senior notes due in 2030. This capital injection laid the groundwork for the crypto buy.
GameStop’s pivot towards digital assets is part of a broader effort to diversify its balance sheet and modernise its corporate strategy. “We are exploring strategic uses of our balance sheet and believe Bitcoin can play a role in this”, the company said at the time.
This announcement ends months of speculation that the Texas-based retailer was considering alternative asset classes. Since March, rumours had been swirling about GameStop’s growing interest in the crypto sector, helping to fuel a rally in its stock.
The confirmation has now solidified GameStop’s position in the world of corporate Bitcoin holders.
Market reaction and industry context
The market’s response to the news was swift. GameStop’s stock (NYSE: GME) rose over 5% in pre-market trading on 28 May, closing at $35 the day before and climbing to $36.30 shortly afterwards.
The stock is now up around 30% over the past month, reflecting increased investor confidence. Year-to-date, GME has gained about 10%.
The stock has been highly reactive to speculation around the company’s strategy. Earlier in February, when rumours about potential crypto investments first surfaced, GME surged by 18%. In March, it jumped another 12% when the company formally hinted at a move into Bitcoin.
The decision to acquire Bitcoin places GameStop alongside companies like Strategy (formerly MicroStrategy), which pioneered corporate Bitcoin purchases in 2020 under the leadership of Michael Saylor.
Other recent entrants include Tokyo-listed Metaplanet and Brazil’s Meliuz, both of which have added Bitcoin to their corporate reserves in 2024.
Just a day before GameStop’s announcement, Trump Media and Technology Group – the parent company of Truth Social – disclosed a $2.5 billion capital raise to fund a Bitcoin acquisition.
Despite initially denying the move, the confirmation adds to a mounting trend of firms seeking exposure to digital assets.
According to data from BitcoinTreasuries.net, over 210 publicly listed companies globally now hold Bitcoin.
Strategy remains the largest holder with more than 576,000 BTC. Collectively, the top 85 firms control over 804,000 coins, as per figures from Hodl15Capital.
Analysts suggest this trend is likely to grow. A recent report by brokerage Bernstein predicts that corporate treasuries could direct up to $330 billion into Bitcoin by 2029, particularly those firms struggling with stagnant growth in traditional sectors.
GameStop, once a struggling high-street retailer, is seen by some in the market as attempting to reinvent itself through bold and unconventional investments. The Bitcoin buy is seen as a continuation of this trajectory.
GameStop’s ongoing reinvention
This is not GameStop’s first interaction with digital assets. In 2022, the company launched a non-fungible token (NFT) marketplace aiming to tap into the then-booming sector of blockchain-based collectibles and gaming assets.
However, the platform was shut down in February 2024 amid declining user interest and broader market instability.
Despite the failed NFT venture, GameStop has had a financially promising year. It reported net income of $131.3 million for the fiscal year 2024, a sharp increase from $6.7 million the previous year.
Still, the company’s net sales dropped from $5.27 billion to $3.82 billion, underlining challenges in its core business.
The company appears to be leaning heavily into digital transformation as a future growth avenue. With $4.5 billion in cash, equivalents, and marketable securities reported earlier this year, it had ample reserves to support the Bitcoin purchase strategy without needing to immediately liquidate other investments.
While the crypto community has broadly welcomed GameStop’s entry into the market, there are calls for greater transparency. Some users on platforms like X and Reddit have urged the firm to run a Bitcoin node and publish proof-of-reserves to confirm its holdings and commitment.
“If GameStop wants to lead in this space, it has to go beyond just holding BTC”, one user wrote. Others have echoed the sentiment, arguing that public proof would add credibility to its strategy.
GameStop has not responded to media requests at the time of writing.
Meanwhile, GameStop’s CEO, Ryan Cohen, is dealing with legal troubles. He is currently facing a lawsuit over $47.2 million allegedly earned from trades involving Bed Bath & Beyond just before its bankruptcy.
The case claims these might constitute “short-swing” trades, potentially obligating Cohen and his firm, RC Ventures, to return the profits.
Still, the timing and scale of the Bitcoin acquisition signal that GameStop is determined to position itself as a digital-forward enterprise.
The move could be a defining chapter in the company’s efforts to remain competitive in an increasingly digitised economy.
Interestingly, GameStop’s latest action mirrors that of El Salvador, which also doubled down on Bitcoin acquisitions this week. The Central American country purchased eight additional Bitcoins despite pressure from the International Monetary Fund to halt such moves.
El Salvador’s government, operating through its Bitcoin Office, has now amassed nearly 6,200 BTC, worth around $674 million.
The parallel highlights a broader movement among entities – both corporate and sovereign – turning to Bitcoin as an alternative to traditional reserves. While motives may differ, the signal is clear: Bitcoin is becoming an increasingly central part of modern financial strategies.
Whether GameStop’s bold investment will pay off remains to be seen. What’s certain is that the company has now joined a rapidly growing cohort of institutions betting big on Bitcoin’s role in the future of finance.
