GameStop has purchased approximately $500 million worth of Bitcoin, roughly half a billion dollars. The company announced the purchase in a brief press release on Twitter/X, causing its share prices to drop by over 10% and remaining lower throughout early trading Thursday.
The move is part of GameStop’s new strategy to invest in cryptocurrency, with plans to buy $1.3 billion worth of Bitcoin. However, investors are divided on the decision, citing extreme pricing volatility. Analysts have questioned why shareholders should support this plan, particularly when alternative investments like a Bitcoin ETF can provide similar returns.
GameStop’s core retail business has been struggling due to the shift towards digital game distribution and used-game sales declining significantly. The company reported a 28% decrease in sales from 2023 to 2024, falling from $5.3 billion to $3.8 billion. To address this, GameStop has been closing stores and reducing its workforce.
Notably, Wedbush analyst Michael Pachter pointed out that GameStop is following the MicroStrategy playbook but at a higher price point than MicroStrategy’s Bitcoin holdings are worth today.
Source: https://fortune.com/2025/05/29/gamestop-buys-a-half-billion-dollars-bitcoin-stock-falls