- GameStop bought its first Bitcoin, totaling 4,710 BTC, worth about $512 million.
- The company’s stock price dropped over 10% after announcing the purchase.
- GameStop raised $1.5 billion to fund its cryptocurrency investment.
- The move was widely expected after public hints and earlier announcements.
- Other companies adopting crypto as treasury assets have seen mixed stock price reactions.
GameStop completed its first major cryptocurrency purchase, acquiring 4,710 Bitcoin after raising $1.5 billion to support the move. The announcement led to the company’s share price dropping more than 10% on the same day, with the stock falling to $31.45 at its lowest point.
The 4,710 Bitcoin purchase was valued at approximately $512 million when the company revealed the news on Wednesday morning. Although the price showed a significant daily decline, GameStop shares remained up nearly 10% over the last week and 14% in the past month.
The company had been signaling its intent to buy Bitcoin for weeks after adding the cryptocurrency to its treasury in late March.
CEO Ryan Cohen previously hinted at the direction by sharing a photo alongside Strategy co-founder Michael Saylor, whose company is the largest corporate holder of Bitcoin, holding more than $62 billion worth. Saylor is a well-known advocate for adopting Bitcoin for company treasuries.
Investor reaction to GameStop‘s move has been mixed. The stock price climbed in late March when the plan was first announced. However, shares dropped after the company chose to raise new funds to buy Bitcoin instead of relying on its existing cash reserves.
Many other publicly traded firms have recently announced cryptocurrency treasury moves, often focusing on Bitcoin, while some companies such as DeFi Development Corp. and Upexi have seen strong returns after choosing alternative cryptocurrencies like Solana. On Tuesday, SharpLink Gaming also experienced a surge in share price following an announcement to start an Ethereum reserve.
While several recent upstarts have made headlines through crypto reserves, GameStop stands out due to its established market presence and history, including its role in the 2021 “meme stock” surge led by influencer Keith Gill, also known as Roaring Kitty.
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