GameStop’s stock fell more than 10% on Wednesday after the company revealed it had bought 4,710 bitcoins. Valued at over $500 million, this investment comes as bitcoin trades near $108,000 per coin, after reaching a record above $111,000 last week.
The video game retailer, led by billionaire Ryan Cohen, had earlier announced in March that its board approved adding cryptocurrency as a treasury reserve asset.
The stock had previously dropped nearly 25% in one day when GameStop said it planned to raise $1.3 billion through convertible senior notes to fund the bitcoin purchase.
GameStop joins a growing list of public companies investing in bitcoin, following firms like MicroStrategy, the largest corporate bitcoin holder. Recently, Trump Media & Technology Group also announced plans to raise $2.5 billion to build one of the largest bitcoin treasuries among public companies, which led to a 10% drop in its shares.
Experts see this trend as a sign of growing corporate adoption of bitcoin. Chris Kline, co-founder of BitcoinIRA, noted that many companies are rushing to add bitcoin to their balance sheets amid expectations of price growth.
Bernstein analyst Gautam Chhugani highlighted that about 80 companies now hold roughly 3.4% of bitcoin’s total supply, a 160% increase since the end of 2023. Bernstein projects bitcoin could reach $200,000 by the end of the year.
GameStop’s move reflects a broader shift as corporations embrace cryptocurrency to diversify assets and capitalize on potential gains.
READ MORE:
