GameStop Buys 4,710 BTC as First Bitcoin Stash

GameStop, a United States video game company, has commenced its Bitcoin-buying practice with an initial acquisition of 4,710 BTC. Although the firm did not disclose how much it spent to accumulate the BTC holdings, its latest acquisition is valued at $513 million based on the crypto asset’s current market price.

GameStop’s stock, GME, did not react positively to news of the BTC purchase despite this being its first known acquisition. According to current data from Google Finance, it sold for $31.57, representing a 9.85% decrease in the past 24 hours.

GameStop Goes Bitcoin Shopping

GameStop disclosed its plan to join the bandwagon of corporate companies buying BTC in March. Still, the firm noted that it will not commit to a HODL policy like other Bitcoin buyers. Instead, the video game company mentioned that it could offload any BTC it buys at any time due to the digital asset’s inherent volatility.

A day after revealing plans to adopt BTC, GameStop announced its intention to raise $1.3 billion by selling bonds to select investors. The cash raised will be used to acquire the apex cryptocurrency.

Despite the price decline GME experienced after the latest BTC acquisition, the stock has performed well in the long term. Over the past year, the game-centric stock has pumped over 30%.

GME’s yearly surge was heavily influenced by the reemergence of Roaring Kitty (Keith Gill), a famous retailer who made headlines by instigating a short squeeze for GME in 2021. While this move netted him millions, it brought losses to various traders. In May 2024, Roaring Kitty resurfaced after a three-year hiatus, sparking an impressive uptrend for the stock.

More Institutional Bitcoin Buyers

In 2020, the American software company Strategy (formerly MicroStrategy) began the practice of periodically buying BTC. Today, it holds 580,250 BTC after its recent purchase, announced this week.

Since then, other public companies have followed, accumulating the leading cryptocurrency. Metaplanet, Strive, The Blockchain Group, and several others have either begun buying BTC or have shown interest in the asset.

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