GameStop Stock Slides 10% After Announcing $500M Bitcoin Purchase
On May 28, 2025, GameStop made a bold move. The company announced it had bought $500 million worth of Bitcoin. That’s around 4,710 bitcoins added to its balance sheet. Right after the news, GameStop stock dropped by over 10%. This surprised many of us.
GameStop is no stranger to headlines. From meme stock madness to major store closures, it’s been a wild ride. But this Bitcoin bet feels different. It’s not about games or retail anymore. It’s about money, risk, and a big leap into the world of crypto.
Some people are calling this a smart way to protect value. Others think it’s just another risky gamble. We all want to know why GameStop does this now? And what does it mean for its future?
Let’s break it all down. We’ll explore the details behind the Bitcoin buy. We’ll also talk about what investors are thinking, and how this compares to moves made by other companies.
GameStop’s Financial Landscape
GameStop has changed a lot in recent years. In late 2024, it made $131.3 million in profit. This was double from the $63.1 million it made the year before.
But sales dropped. They went down to $1.283 billion from $1.794 billion. This shows that GameStop had trouble selling in stores.
GameStop closed around 600 stores in the U.S. in 2024 to deal with this. It also said more stores will close in 2025.
The company is trying new things. In 2022, it started a crypto wallet. This shows it wants to grow in the digital and tech world.
Details of the Bitcoin Acquisition
GameStop bought 4,710 bitcoins. It used money from a $1.3 billion bond sale in March 2025. The company’s board all agreed to change its money policy. Now it can keep Bitcoin as part of its savings.
When GameStop bought Bitcoin, it cost around $108,000. This was close to Bitcoin’s highest price ever$109,000 in May 2025. This shows GameStop wanted to take advantage of Bitcoin going up in value.
Market and Investor Reaction
The market reacted fast to GameStop’s Bitcoin news. The stock dropped almost 11% that same day. Many investors were worried about the risk of using Bitcoin.
Experts shared their concerns too. They said Bitcoin’s price changes too much. This could hurt GameStop’s money plans.
Some compared GameStop to MicroStrategy and Metaplanet. These companies also bought a lot of Bitcoin. They made good money, but it was still risky. Many investors still feel unsure about mixing Bitcoin with company savings.
Strategic Implications: Diversification or Distraction?
GameStop’s move into Bitcoin shows it wants to try new things. It may want to grow with digital trends and look modern in the gaming and retail world.
Buying Bitcoin could help it stand out. But this step also brings questions. Some people worry it may stop focusing on its main business. Bitcoin prices go up and down a lot. Rules about crypto are also not clear. These things can cause problems.
GameStop needs to be careful. It should try new ideas but also protect the money it makes from regular sales.
Broader Industry Context
GameStop is not alone in buying Bitcoin. Other companies, like MicroStrategy and Metaplanet, have done the same. Some made big gains from it.
MicroStrategy’s stock went up by 117% in one year. Metaplanet’s stock jumped 275% after it focused on Bitcoin.
These stories show that Bitcoin can bring big rewards. But they also show the risks. How well this works depends on the market. It also depends on how well each company handles those risks.
Wrap Up
GameStop’s $500 million Bitcoin buy is a big change. The company is trying to grow while retail business is getting harder. Other big companies are also putting money in crypto. But this step brings new risks too.
Right after the news, GameStop’s stock went down. Many investors were worried about money safety and Bitcoin’s ups and downs.
Now, GameStop must be careful. It needs to mix new ideas with smart money plans. We will have to wait and see if this plan brings success or becomes a big mistake.
Frequently Asked Questions (FAQs)
GameStop’s highest Stock price was around $483 on January 28, 2021. This happened during the big “meme stock” event pushed by Reddit traders.
The stock went up because many small investors on Reddit bought it. They wanted to beat big hedge funds that were betting the stock would fall.
GameStop can be risky. Its price changes a lot. Some think it has future value. Others say it’s too risky. It depends on your goals.
As of now, Ryan Cohen owns the most. He is the company’s chairman and a big investor. He believes in turning GameStop into a tech company.
Disclaimer:
This content is for informational purposes only and not financial advice. Always conduct your research.