In a bold move signaling a significant shift in corporate treasury strategies, GameStop Corp. (NYSE: GME) announced on May 28, 2025, its first major foray into cryptocurrency by purchasing 4,710 bitcoins, valued at approximately $513 million at the time of acquisition.
GameStop’s decision to invest heavily in Bitcoin follows a broader trend among corporations diversifying their treasury holdings with digital assets. In March 2025, the company’s board unanimously approved an update to its investment policy, allowing Bitcoin to be used as a treasury reserve asset. This policy change paved the way for the recent acquisition, funded in part by a $1.3 billion convertible notes offering completed in late March.
The move aligns GameStop with other companies like MicroStrategy, now known as Strategy, which has become the largest corporate holder of Bitcoin with 580,000 tokens worth $40.61 billion.
Despite the significant investment, GameStop’s stock experienced volatility following the announcement. Shares initially rose in pre-market trading but closed down 10.9% on the same day, reflecting investor uncertainty about the company’s strategic direction and the inherent volatility of cryptocurrency markets.
Analysts suggest that the stock’s decline may be attributed to a “sell the news” phenomenon, where investors capitalize on pre-announcement gains. Additionally, Bitcoin’s price dipped by 1.5% to $107,479 on the day of the announcement, potentially influencing investor sentiment.
GameStop’s financial position has strengthened in recent quarters. The company reported adjusted Q4 earnings of 30 cents per share, surpassing analyst expectations, although revenue fell 28% year-over-year to $1.28 billion. Cash reserves surged to $4.775 billion compared to $922 million a year earlier, reflecting the capital raise.
The Bitcoin investment represents approximately 10.7% of GameStop’s liquid assets as of February 1, 2025. While the company has not disclosed specific details about the timing or price of the Bitcoin purchases, the move indicates a strategic shift towards embracing digital assets as a means of financial diversification.
GameStop’s entry into the cryptocurrency space reflects a growing trend among corporations exploring digital assets to diversify their treasury holdings. Companies like Tesla, Coinbase, and Block have already made significant Bitcoin purchases, each holding over $1 billion worth of the cryptocurrency.
The move also coincides with a more favorable regulatory environment under the Trump administration, which has expressed support for digital currencies. This shift has contributed to Bitcoin reaching an all-time high of over $110,000 in May 2025.
GameStop’s $513 million investment in Bitcoin marks a significant strategic pivot as the company seeks to diversify its financial assets and align with broader corporate trends embracing digital currencies. While the move introduces new risks associated with cryptocurrency volatility, it also positions GameStop at the forefront of a growing movement among corporations integrating digital assets into their financial strategies.
As the cryptocurrency landscape continues to evolve, GameStop’s bold investment may serve as a bellwether for other companies considering similar moves, signaling a new era of corporate engagement with digital assets.