GameStop Stock Under Spotlight Following Purchase Of 4,710 Bitcoin

GameStop Strengthens Its Memestock Image with Over $500 Million Bitcoin Investment

GameStop is strengthening its commitment to cryptocurrency. On Wednesday, May 28, the company revealed on social media that it had purchased 4,710 Bitcoin (BTC), with the total investment amounting to roughly $519 million. At the time of the acquisition, each Bitcoin was priced at around $109,728. Following the announcement, GameStop’s stock climbed over 3% in pre-market trading ahead of Thursday’s market open.

The announcement came shortly after GameStop completed a $1.5 billion convertible senior notes offering on April 1. The move was part of a broader strategy to capitalize on its memestock reputation, using the funds to invest in Bitcoin with the goal of boosting its share price and attracting more investors.

This isn’t GameStop’s first step into cryptocurrency. Back on March 25, the company’s board approved a plan to allocate part of its $4.77 billion cash reserves to Bitcoin. However, it did not reveal the exact portion of the funds that would be converted at the time.

Can Bitcoin Be GameStop’s Lifeline?

GameStop’s recent Bitcoin investment seems to reflect an effort to revive its troubled business, drawing inspiration from Michael Saylor’s well-known crypto strategy. In February, CEO Ryan Cohen fueled speculation about a Bitcoin-focused shift by posting a photo alongside Saylor—a move many traders interpreted as a hint toward deeper involvement in digital assets.

For now, the strategy seems to be paying off. After GameStop’s recent $519 million Bitcoin purchase, the company’s stock increased by nearly 6% to $35 per share. Since first signaling its Bitcoin pivot in February, the stock has surged about 40%, rising from $25 at that time.

GameStop is among several companies adopting Michael Saylor’s Bitcoin investment approach to enhance their stock valuations. For example, on May 28, Japanese firm Metaplanet issued $50 million in bonds to expand its Bitcoin holdings. Additionally, just one day earlier, Donald Trump’s Trump Media & Technology Group announced plans to invest $2.5 billion in Bitcoin, highlighting a growing trend of companies turning to digital assets to boost their market value.

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