GameStop Makes Foray into Bitcoin with $513 Million Investment
In a move that has sparked significant interest in the financial markets, GameStop, the US video game and consumer electronics retailer, has announced its first Bitcoin investment, acquiring 4,710 Bitcoin, according to a statement posted on the company’s X account on May 28. The news was first reported by Cointelegraph, a leading cryptocurrency news outlet.
The company did not specify how much it paid for the Bitcoin (BTC) or when the purchases were made in the announcement, while its Form 8-K filing with the US Securities and Exchange Commission also offers little detail. However, at the time of writing, the amount purchased was worth around $513 million. As Cointelegraph notes, "The announced acquisition is GameStop’s first publicly acknowledged Bitcoin purchase since the company disclosed plans to move into Bitcoin investment in March."
In March, GameStop said it would fund the Bitcoin purchase through debt financing and launched a $1.3 billion convertible notes offering. According to Cointelegraph, the news comes after months of speculation that GameStop was exploring alternative assets, including cryptocurrencies. The company’s stock shares have climbed amid the speculation, jumping 12% in March, and an 18% spike in GME stock prices in February.
The investment has also had a positive impact on GameStop’s stock price, with shares closing at $35 on May 27 and trading at $36.30 in the pre-market at the time of publication. The stock is up around 30% in the past 30 days, with year-to-date gains of about 10%. As Cointelegraph reports, "GameStop (GME) stock year-to-date price chart. Source: TradingView."
The move by GameStop is the latest in a trend among companies purchasing the world’s largest cryptocurrency, following the lead of Michael Saylor’s Strategy (formerly MicroStrategy), which made its first BTC acquisition in August 2020. Other companies such as Japan’s Metaplanet and Brazil’s Meliuz have also beefed up their Bitcoin holdings this year after adopting Bitcoin treasury strategies.
In related news, Trump Media and Technology Group, the company that owns US President Donald Trump’s Truth Social platform, confirmed a $2.5 billion capital raise to purchase Bitcoin after previously denying reports of the deal. As Cointelegraph notes, "GameStop’s Bitcoin investment is the latest in a trend among companies purchasing the world’s largest cryptocurrency."
Bitcoin’s Corporate Adoption Booming
The investment by GameStop is a significant development in the adoption of Bitcoin by corporate entities. According to Cointelegraph, "GameStop’s Bitcoin investment is the latest in a trend among companies purchasing the world’s largest cryptocurrency following the lead of Michael Saylor’s Strategy (formerly MicroStrategy), which made its first BTC acquisition in August 2020."
The growing trend of corporate adoption of Bitcoin is a significant development in the cryptocurrency space. As more companies begin to invest in Bitcoin, it is likely to have a positive impact on the price of the cryptocurrency and increase its mainstream acceptance.
What’s Next for GameStop?
It remains to be seen what the future holds for GameStop and its Bitcoin investment. However, according to Cointelegraph, the company did not receive a response to their request for comment regarding its Bitcoin purchase by the time of publication.
The investment by GameStop is a significant development in the cryptocurrency space, and it will be interesting to see how the company manages its Bitcoin holdings in the future. One thing is certain, however, the investment by GameStop has sparked significant interest in the financial markets, and it will be closely watched by investors and analysts in the coming days and weeks.
Source: Cointelegraph
This news was originally published on: https://cointelegraph.com/news/gamestop-buys-bitcoin-4710-btc
