GameStop, the struggling video game retailer, has made its first large foray into the world of cryptocurrency by purchasing over 4,700 Bitcoins worth more than $500 million. The move is part of the company’s attempt to boost its dwindling profits.
However, despite initial optimism from investors, GameStop’s stock price plummeted 10% on Wednesday morning after the announcement, leaving many to question the company’s new financial strategy. The retailer had earlier shifted its focus away from selling video games and towards investing in crypto, with plans to raise $1.3 billion through debt financing.
While other companies like Strategy and Trump Media and Technology Group have seen success by pivoting to Bitcoin, crypto expert Vitaliy Shtyrkin warns that the currency’s volatility could pose risks for investors. “Bitcoin is exciting for a loyal investor base, but it distracts from core fundamentals,” he says. “If crypto prices drop, GameStop may easily end up in a double-bind.”
GameStop has been struggling to adapt to changing consumer demand, with sales declining by 28% between 2023 and 2024. The company has already closed over a quarter of its locations and plans to shut down more stores in 2025.
The investment marks another unexpected twist in GameStop’s history, which gained notoriety as a “meme stock” in 2021 after shares unexpectedly skyrocketed following a viral Reddit trend.
Source: https://fortune.com/crypto/2025/05/28/gamestop-investors-flee-500-million-bitcoin-buy