GameStop Commits Half a Billion Dollars Towards Accumulating Bitcoin for Its Cryptocurrency Reserves
GameStop Enters Cryptocurrency Market with $512 Million Bitcoin Purchase
Video game retailer GameStop has announced its entry into the cryptocurrency market, acquiring approximately 4,710 Bitcoins, currently valued at over $512 million. The company's move follows a $1.5 billion offering of convertible senior notes to investors in early April.
GameStop revealed the acquisition through a Twitter post, with no immediate response from the company regarding a request for comment from Decrypt. It is assumed that this Bitcoin purchase is part of the planned corporate Bitcoin treasury, as stated in an earlier announcement.
In March, GameStop's CEO, Ryan Cohen, hinted at the retailer's potential Bitcoin strategy, having posed next to Strategy co-founder and Executive Chairman Michael Saylor, who established a business model for public companies holding Bitcoin as an asset. Strategy's adoption of Bitcoin transformed the company from a mid-tier business intelligence software provider to a firm with a market capitalization of $101.76 billion.
Cohen discussed the decision to invest in Bitcoin during a brief interview at the Bitcoin 2025 conference, stating that these digital assets could serve as a hedge against economic shifts. When asked about future Bitcoin purchases and the possibility of following other strategies, Cohen responded that the company wouldn't make public proclamations, instead focusing on its own path.
GameStop's strategy for its corporate treasury involves diversifying assets to include Bitcoin and potentially optimize investment returns and meet financial obligations. The move signifies a shift in the company's focus from solely selling video games to investing in digital assets.
This investment follows a broader trend among public companies seeking to diversify their treasury assets with digital currencies. Marathon Digital Holdings Inc., Riot Platforms Inc., CleanSpark, and Tesla all hold billions of dollars worth of Bitcoin each, while SharpLink Gaming recently raised $425 million for Ethereum purchases and welcomed Ethereum co-founder Joseph Lubin onto its board of directors.
Founded in 1984, GameStop became the center of a stock market phenomenon in 2021. A group of Redditors, led by Keith Gill, or Roaring Kitty, fought against hedge fund short sellers, causing GME's stock price to skyrocket in a massive short squeeze. Since then, GameStop has been known as a "meme stock," experiencing volatility tied to social media hype.
In the Bitcoin 2025 interview, Cohen described GameStop as a struggling company in 2021, under financial pressure due to shifting from physical game sales to digital downloads. As the company moves forward, it is expected to reap the benefits of its cryptocurrency venture, potentially enhancing its financial position.
Additional reporting by Logan Hitchcock.Editor's note: The article was updated after publication to include comments from Cohen following the Bitcoin 2025 conference.
- GameStop's recent acquisition of 4,710 Bitcoins, worth over $512 million, signifies their entry into the cryptocurrency market.
- This Bitcoin purchase is considered part of GameStop's planned corporate Bitcoin treasury, as announced earlier.
- Ryan Cohen, GameStop's CEO, hinted at the retailer's potential Bitcoin strategy in March, inspired by Michael Saylor's business model at Strategy.
- Cohen believes that digital assets like Bitcoin can serve as a hedge against economic shifts and help meet financial obligations.
- In the future, GameStop may diversify its treasury assets with other digital currencies like Ethereum, as demonstrated by SharpLink Gaming's Ethereum purchases.
- The decision to invest in cryptocurrency is part of GameStop's strategy to shift focus from solely selling video games to investing in digital assets and technology, following trends in finance and business.
