GameStop Shares Drop Nearly 6% Following Announcement of Initial Bitcoin Purchase
On Wednesday morning, video game retailer GameStop (GME) revealed it had acquired 4,710 bitcoins, marking a significant step in its previously announced crypto treasury strategy. Despite the excitement leading up to the announcement, GameStop shares fell nearly 6% on Thursday as investors appeared to sell off following the news.
The company had outlined its plans in March alongside a $1.3 billion capital raise intended to finance bitcoin purchases. While the exact dates and prices of the bitcoin acquisitions were not disclosed, the purchase is estimated to be worth around $500 million—modest compared to the company’s overall $1.3 billion capital raise and billions in existing cash reserves.
GameStop’s stock had rallied more than 60% in the weeks leading up to Wednesday’s announcement, recovering from a sharp mid-month market dip tied to the Trump Liberation Day tariff news. However, the recent sell-off has brought the stock down nearly 20% since reaching its recent highs.
The decline may reflect investors “selling the news” after a significant run-up or growing fatigue with corporate bitcoin treasury strategies, which have been announced at a rapid pace in recent weeks. Given GameStop’s $14 billion market capitalization, the bitcoin purchase was viewed by some as underwhelming in scale.
