- GameStop bought 4,710 Bitcoin valued at approximately $513 million.
- The purchase was funded by a $1.5 billion convertible note offering.
GameStop has officially entered the Bitcoin market with a purchase of 4,710 BTC, according to a May 28 SEC filing. The acquisition marks the company’s first confirmed investment since announcing its intent to adopt Bitcoin as a treasury reserve asset.
With Bitcoin trading near $109,080 at the time, the total purchase is estimated at $513 million. Although the company did not disclose the exact transaction price, the figure aligns with market averages from CoinGecko’s price data.
In March, GameStop’s board approved a new treasury policy centered on Bitcoin. Soon after, the firm raised $1.5 billion through a convertible notes offering to finance the move. The funds were earmarked specifically for alternative asset investments, including cryptocurrency.
This strategy places GameStop among a growing list of public companies shifting reserves into Bitcoin. Notably, Strategy, formerly MicroStrategy, leads the corporate BTC holdings with over 576,000 coins. Tokyo-listed Metaplanet and Brazil’s Meliuz have also adopted similar policies in 2024.
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Interestingly, GME stock initially surged on the speculation. It rose 12% in March and added 18% after February rumors. GameStop closed at $35 on May 27 and touched $36.30 in pre-market trading before the announcement.
However, the stock reversed course following the official disclosure. GME plunged over 10% on Wednesday, hitting a low of $30.73 before rebounding slightly to $31.45. Despite this drop, the stock remains up 10% for the week and 14% for the month.
The company’s announcement on X confirmed the investment but offered few additional details. The SEC Form 8-K also remained vague regarding timing and pricing. Still, the timing aligns with earlier signs, including a February photo of CEO Ryan Cohen with Strategy’s Michael Saylor, a vocal advocate for Bitcoin.
Trump Media recently confirmed a $2.5 billion capital raise to acquire Bitcoin, further highlighting the shift. GameStop’s move, though not unexpected, underscores the normalization of Bitcoin in traditional corporate finance.
As Bitcoin gains ground, more companies may adopt it to hedge against inflation and diversify reserves. GameStop’s bold step into crypto could signal more large-cap entries in the months ahead.
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