GameStop Bets Big on Bitcoin—Drops $512M from Its $1.4B War Chest

GameStop just made a power move—snagging 4,710 Bitcoins in a half-billion-dollar plunge. The retail rebel’s dipping into its $1.4 billion reserves, swapping meme-stock clout for crypto credibility.

Wall Street’s probably clutching its pearls. Because nothing says ’trust the process’ like burning cash on digital gold while your core business model fights for relevance.

One thing’s clear: GameStop’s playing the long game—or just really loves volatility.

GameStop’s stock reacts to crypto pivot as financial concerns remain

Before GameStop confirmed anything, its stock had already been moving. Rumors in February caused a surge of about 18%. The March announcement drove the price up by another 12%.

On May 27, GameStop shares closed at $35 and were trading at $36.30 in the pre-market session the next morning. Over the last month, the stock is up around 30%, and about 10% higher for the year.

However, the Bitcoin buy comes while the core retail business is shrinking. The latest quarterly report shows a 28% drop in revenue year-on-year. That kind of decline doesn’t align well with the current hype surrounding the stock.

GameStop’s trailing price-to-earnings ratio is sitting above 100x, which is way out of line for a retail company. The valuation gap has raised a lot of eyebrows.

Only one analyst is still tracking GameStop on Barchart. That analyst currently has a “Strong Sell” rating on the stock, placing a target of $13.50. If that plays out, GameStop could drop over 60% from where it stands now.

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