GameStop Invests $513 Million in Bitcoin Amid Strategic Crypto Pivot
GameStop, the US-based video game retailer once known for triggering the 2021 meme stock frenzy, has taken a major leap into the world of digital assets by purchasing bitcoin worth approximately $513 million. The company disclosed the move in a regulatory filing on Wednesday, stating that it had acquired 4,710 bitcoins, though the exact timeline of the purchases was not mentioned.
This marks GameStop’s first major foray into cryptocurrency since announcing its strategic shift toward digital assets in March this year. The move closely mirrors the playbook of business intelligence firm MicroStrategy, which has seen substantial investor interest by aligning itself with the bitcoin market.
Bitcoin was trading at around $108,903 in early US trade, slightly lower by 0.7%. Despite the dip, GameStop’s announcement appears to have lifted market sentiment, with the company’s shares rising 4.4% in pre-market trading.
Also Read:- Trump Media to Invest $2.5 Billion in Bitcoin Through Institutional Fundraise
The Dallas-headquartered company, which has been battling challenges in its traditional retail gaming business, is eyeing crypto as a new frontier to rejuvenate investor interest and diversify its portfolio. As of February 1, GameStop reported cash, cash equivalents, and marketable securities totalling $4.78 billion — indicating it has the liquidity to pursue alternative investments like digital currencies.
GameStop’s bitcoin acquisition follows a similar move by Trump Media and Technology Group, which recently announced plans to raise $2.5 billion to build its own bitcoin reserve.
The growing trend of US companies investing in bitcoin reflects the rising institutional appetite for crypto as an asset class. It also highlights how companies with large cash reserves are turning to digital assets for long-term value preservation amid inflation concerns and evolving investor expectations.
Disclaimer: This post is for general informational purposes only. It does not constitute financial advice. Please consult a qualified professional before making financial decisions.
