GameStop Buys $500M of Bitcoin, Joining a Line of Corporates Adding BTC to Balance Sheets

Days after the Trump Media and Technology Group (NASDAQ:DJT), controlled by the Trump family, announced plans to purchase £1.85 billion ($2.5 billion) worth of bitcoin, GameStop (NYSE:GME) announced it bought 4,710 bitcoins worth almost £380.97 million ($513 million) at current prices.

The move comes as corporates like Michael Saylor's Strategy continue to aggressively purchase the cryptocurrency. Strategy's shares are up over 100% in the past year as it accumulated 580,000 BTC worth over £24.50 billion ($33 billion).

Corporate investments in bitcoin are becoming a new trend. Companies like Tesla (NASDAQ:TSLA), Acurx Pharma, and Riot Platforms (NASDAQ:RIOT) have also joined the trend of stashing crypto. Even a Japanese company, Metaplanet, which initially prioritised hotel management, recently became a bitcoin holding company as its stock price surged over 275% this year.

Bitcoin has surged almost 50% from its April trough to reach record highs of almost £83,175 ($112,000) per token in recent days. GameStop CEO Ryan Cohen said on the company's bitcoin acquisition that if the thesis is correct, bitcoin and gold can be a hedge against global currency devaluation.

Bitcoin's Advantage Over Gold According to Cohen

Cohen explained that bitcoin has certain unique advantages compared with gold, especially the portability aspect of the digital asset, including easy storage and transactional authentication via the blockchain. Meanwhile, gold requires insurance, which can be expensive.

Ultimately, there's an asymmetric upside; gold is a more mature market with a £14.85 trillion ($20 trillion) market cap compared with bitcoin's £1.48 trillion ($2 trillion) market cap. Hence, if the thesis becomes a reality, bitcoin could soon become digital gold, Cohen added.

When asked if the company would buy more bitcoin and was following the strategy of corporates like Strategy, Cohen said, 'we are not going to call our shots in advance for obvious reasons' and GameStop isn't following any other company's playbook but its own strategy. For crypto enthusiasts and investors, he advised them not to follow GameStop's strategy but encouraged them to build their own investing roadmap based on critical thinking and market analysis.

'GameStop is following GameStop's strategy. We're not following anyone else's strategy,' Cohen said.

The gaming retailer first detailed its crypto purchase plans in March, funded via a £965.43 million ($1.3 billion) convertible bond sale. The company even amassed a £3.53 billion ($4.76 billion) cash pile as of 1st February, according to its annual report released in April.

GameStop's foray into bitcoin could be a part of Cohen's strategy to revive the brick-and-mortar business. Under his leadership, the company has prioritised streamlining business operations and major cost-cutting measures, including the transition from physical games to digital versions, to ensure the company stays profitable. GameStop shares are up 1.4% in premarket trading on Thursday.

The recent Bitcoin 2025 Conference in Las Vegas was attended by prominent figures like JD Vance, Michael Saylor, and Blockstream CEO Adam Back. During the conference, Donald Trump Jr. and Eric Trump predicted that bitcoin prices could reach £126,320 ($170,000) by the end of 2026. Meanwhile, Back reiterated his forecast of bitcoin prices reaching £743,060 ($1 million) if the US establishes a strategic bitcoin reserve.

Disclaimer: Our digital media content is for informational purposes only and not investment advice. Please conduct your own analysis or seek professional advice before investing. Remember, investments are subject to market risks and past performance doesn't indicate future returns.