GameStop’s $513M Bitcoin Bet Backfires—Stock Tanks 3% as Wall Street Scratches Head
GameStop just threw half a billion at Bitcoin—and investors responded by dumping shares. The meme-stock darling’s 3% plunge shows Wall Street still hasn’t figured out whether crypto is a power move or desperation play.
When a brick-and-mortar retailer pivots to digital gold, analysts either applaud the vision or question the timing. Today’s selloff suggests the latter—because nothing terrifies institutional investors quite like a company actually using its cash for something interesting.
Bonus jab: At least they didn’t YOLO into NFTs this time.
GameStop Corp. (GME)
GameStop Confirms $513M Bitcoin Purchase
GameStop filed an 8-K form with the U.S. SEC confirming the bitcoin acquisition. The move aligns with the firm’s March policy to adopt Bitcoin as a treasury reserve asset. The company has not revealed the exact purchase date or average entry price.
GameStop has purchased 4,710 Bitcoin. pic.twitter.com/gGdr0BRrAv
— GameStop (@gamestop) May 28, 2025
The Bitcoin transaction follows GameStop’s $1.5 billion raise through convertible senior notes completed in early April. Market sources estimate the acquisition value based on Bitcoin’s price of around $109,080 on May 28. GameStop has become one of the top 13 public Bitcoin holders globally.
In addition to the SEC filing, GameStop also shared the update on its official X page. The market responded with a brief pre-market stock rally that quickly reversed during early trading.
Stock Dips After Initial Spike
GME stock spiked to over $36 in early pre-market hours following the Bitcoin announcement. However, the rally was short-lived as the price dropped rapidly, reflecting high volatility and mixed investor sentiment. Analysts noted the pullback may indicate uncertainty over the firm’s long-term crypto exposure.
Despite the drop, investor interest remains high as GameStop continues to shift from a retail gaming firm to a digital asset-focused entity. The decision to hold Bitcoin signals a broader strategy to diversify corporate assets amid stagnating Core business growth. GameStop joins a list of companies seeking relevance through crypto integration.
The firm has not confirmed whether it plans further digital asset purchases or node operations. However, the crypto community urged the firm to increase involvement by running a Bitcoin node and publishing proof-of-reserves. These calls reflect GameStop’s expectations for more transparency and blockchain engagement.
Corporates Boost Bitcoin Holdings Amid Growing Trend
GameStop’s MOVE mirrors that of firms like Strategy and Metaplanet that adopted Bitcoin as a strategic treasury asset. Strategy now leads all corporate Bitcoin holders with more than 576,000 BTC. The trend shows rising institutional adoption of Bitcoin to offset weakening traditional markets.
According to BitcoinTreasuries.net, over 210 public companies now hold Bitcoin on their balance sheets. These firms collectively control more than 804,000 BTC, reflecting rising confidence in Bitcoin’s long-term value. Analysts predict this trend could accelerate as more companies seek non-traditional growth paths.
Bernstein research forecasts that corporate treasuries may allocate $330 billion to Bitcoin by 2029. Small firms with limited growth options could benefit from holding Bitcoin as a hedge and competitive advantage. GameStop’s move fits within this broader shift in corporate treasury strategy.
Future Outlook
GameStop’s $513 million Bitcoin acquisition has shaken markets and triggered intense debate. While GME stock faced short-term pressure, the long-term impact depends on execution and market conditions. As corporate adoption of Bitcoin expands, all eyes remain on how GameStop manages this bold transition.
