GameStop Doubles Down: $500M Bitcoin Bet Fuels Crypto Payment Plans

GameStop just shoved half a billion into the crypto table—and dealers are taking notice.

The retail giant's audacious Bitcoin move isn't just portfolio dressing. Insiders whisper this positions them to roll out crypto payments faster than a scalper bots drops PS6 preorders.

Wall Street analysts (the same geniuses who missed the last two bull runs) are suddenly 're-evaluating the digital asset thesis.' Meanwhile, the company's stock is doing its best meme-stock impression—volatile enough to give day traders ulcers.

One thing's clear: When traditional finance zigged, GameStop zagged. Whether this plays out as visionary or reckless depends entirely on Bitcoin's next mood swing.

Company Considers Crypto for Collectibles

GameStop is looking at crypto as a possible payment method for trading cards and collectibles. CEO Ryan Cohen said the retailer is open to the idea, depending on customer demand. He told CNBC’s Squawk Box that the company wants to reduce its dependence on hardware and focus more on collectibles.

“There’s an opportunity to buy trading cards and to do so using cryptocurrency. So, we’ll see how much there is on the actual demand side for that kind of product,” Cohen said. 

When asked which coins might be accepted, he responded, 

“We’re going to look at all cryptocurrencies.”

Bitcoin Seen as Protection, Not a Copy of Others

GameStop bought 4,710 Bitcoin in late May, spending over $500 million. Cohen said the decision was about protecting value during a time of rising inflation and currency concerns. 

“The utility of crypto beyond investing is a hedge against inflation,” he said.

He also pushed back against the idea that GameStop is following the same path as Strategy. “We have our own unique strategy,” he said. Cohen pointed out that GameStop holds more than $9 billion in cash and marketable securities, and will be careful with how that money is used.

This is not GameStop’s first step into crypto. In 2022, it launched both a crypto wallet and an NFT marketplace. Both were later closed due to unclear rules in the U.S. market. The wallet shut down in November, and the NFT platform closed in January.

Despite those setbacks, the company is still watching the space closely. Cohen’s recent comments suggest a more careful and measured approach going forward.

Share Price Remains Flat After Announcement

The stock didn’t move much after Cohen’s comments. It dropped by 2% during the day and rose only slightly after the market closed. GameStop shares are currently trading at $23.20. In May, GameStop’s stock had jumped by 30% ahead of the bitcoin buy but fell again in June after a new fundraising plan was announced.

Meanwhile, the company raised $450 million as part of a planned $2.25 billion private offering. Some of those funds could be used for future digital asset investments, depending on market and legal developments.