GameStop shares took a nosedive, plummeting nearly 11% on May 28, following the company’s announcement of its inaugural Bitcoin purchase. The stock closed at $31.21 on the New York Stock Exchange, as reported by Google Finance. This market reaction—a classic case of “sell the news”—came hot on the heels of the retailer’s acquisition of 4,710 Bitcoin, valued at approximately $513 million. This strategic move had been anticipated since March 26, when GameStop first hinted at its plans for a Bitcoin treasury strategy amid swirling investor speculation.
The Market’s Mixed Signals
GameStop’s latest venture into the cryptocurrency arena is part of a larger trend. More companies are turning to Bitcoin to bolster their cash reserves or rebrand themselves as crypto-forward enterprises. Yet, not all market participants are convinced. The stock’s sharp decline indicates a skittishness among investors, perhaps wary of the volatile nature of digital currencies. As explored in our recent coverage of Metaplanet’s strategy to grow its Bitcoin reserves, this trend is gaining traction across various sectors.
Interestingly, GameStop wasn’t the only entity to see its stock take a hit. Trump Media and Technology Group (TMTG), known for the Truth Social platform, experienced a more severe drop—over 24%—after announcing a $2.5 billion capital raise to snap up Bitcoin. It seems the market is casting a skeptical eye on companies diving headfirst into cryptocurrency.
Strategic Insights from the Top
GameStop CEO Ryan Cohen, speaking at the Bitcoin 2025 conference in Las Vegas, elaborated on the decision to embrace Bitcoin. “Bitcoin and gold can be hedges against global currency devaluation and systemic risk,” Cohen stated, emphasizing the cryptocurrency’s unique benefits over traditional assets like gold. Cohen highlighted Bitcoin’s portability, ease of verification through blockchain technology, and the simplicity of securing it in a digital wallet—all factors that make Bitcoin more appealing as a treasury asset.
Cohen didn’t stop there. He pointed out Bitcoin’s limited supply and its technological edge over gold, whose inflation rate could potentially rise due to advancements in mining techniques. “Gold is a more mature market,” he noted, “with a market capitalization of about $20 trillion, whereas Bitcoin is still around $2 trillion. The upside potential is significant.”
Historical Context and Future Implications
The concept of using Bitcoin as a hedge against inflation isn’t new. Companies like Tesla and MicroStrategy have famously added Bitcoin to their balance sheets, championing its role as a digital gold. But GameStop’s leap into the cryptocurrency pool does raise eyebrows, especially given its rocky history and meme stock status over the past few years. This follows a pattern of institutional adoption, which we detailed in our analysis of Metaplanet’s US expansion for Bitcoin strategy.
The broader implications of GameStop’s Bitcoin purchase are yet to unfold. Will this move pay off, or will it be a cautionary tale for other firms considering a similar path? The market remains a mixed bag—some see the potential for substantial gains, while others warn of the inherent risks.
What lies ahead for GameStop and its investors? Only time will tell whether this bold foray into cryptocurrency will stabilize and strengthen the company’s financial standing or add volatility to its storied journey. As we move further into 2025, the market will be watching closely, scrutinizing every move and pivot. Keep an eye on this space—it’s bound to be a wild ride.
Source
This article is based on: GameStop shares sink 11% after BTC purchase
Further Reading
Deepen your understanding with these related articles:
- Metaplanet Issues $25M Bonds to Buy More Bitcoin
- Strategy Raising Another $21B to Buy Bitcoin, Posts Large Q1 Loss on BTC Price Decline
- Truth Social Explores Cryptocurrency Launch for Subscription Payments (openai)
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
