On 28 May 2025, U.S. gaming store chain GameStop Corp, which gained notoriety in 2021 for its meme stock rally, made a major financial maneuver in buying 4,710 Bitcoins at a cost of about $513 million. By this acquisition, Bitcoin will become a major component of its treasury reserves in an effort to protect the company from financial hazards such as inflation. From a general audience’s point of view, this is GameStop’s aggressive effort to reinvent itself in the face of retail hardship but has become controversial on the grounds of Bitcoin’s volatility as well as the company’s continuing struggles.
Grapevine, Texas-based GameStop is a household name for video game and electronic retailing but took a hit from the trend to online game downloads and online retailing, with sales declining 28% from a 2023 level of $5.3 billion to 2024 levels of $3.8 billion. The company was catapulted to fame in 2021 as retail traders on online forums such as Reddit pushed its stock price to dizzying levels in a short squeeze. As its revenue declines, GameStop has dabbled in new frontiers such as non-fungible tokens and, more recently, in Bitcoin. It was in March 2025 that its board authorized holding of Bitcoin and stablecoins, which are digital currencies pegged to the U.S. dollar, as treasury holdings, following CEO Ryan Cohen’s talks with Michael Saylor, a well-known Bitcoin supporter and Strategy chief.
GameStop’s purchase of 4,710 Bitcoins, valued at $513 million, was confirmed on May 28, 2025, via an official press release. The acquisition was funded through a $1.3 billion convertible bond sale in March 2025, a type of debt that can convert into company stock. CEO Ryan Cohen announced the move at the 2025 Bitcoin Conference in Las Vegas, stating,
“If the thesis is correct, Bitcoin and gold can be a hedge against global currency devaluation and systemic risk. Bitcoin has certain unique advantages compared to gold, such as portability and instant verification via the blockchain”
The purchase aligns with GameStop’s strategy to diversify its $4.8 billion cash reserves and optimize returns.
The announcement triggered immediate market turbulence. GameStop’s stock initially rose in pre-market trading but closed the day down 10.9%, reflecting investor unease. Bitcoin’s price also dipped 1.5% to around $107,479 on May 28, 2025, amid broader market fluctuations. Some investors see the move as a forward-thinking hedge against economic instability, while others worry it distracts from GameStop’s retail challenges. Social media reactions on X were mixed, with posts like @BastienSinclair’s praising the move as “backing the money of the people” , while @HuntrTBonneau quipped about GameStop “speedrunning the ‘hold the bag’ DLC”.
GameStop’s Bitcoin investment draws heavily from Strategy’s playbook, led by Michael Saylor, who turned his company into the largest corporate Bitcoin holder since 2020, boosting its stock by 2,700%. Other firms, like Japan’s Metaplanet and Brazil’s Meliuz, have followed suit, with over 113 public companies now holding $88 billion in Bitcoin. Cohen, however, emphasized GameStop’s unique approach, saying,
“GameStop is following GameStop’s strategy. We are not following anyone else’s”
The strategy aims to diversify assets, protect against inflation, and attract crypto-savvy investors, leveraging Bitcoin’s fixed 21-million-coin supply and decentralized nature.
Critics argue that GameStop’s $513 million bet on Bitcoin is risky, given its volatile price and the company’s retail struggles, including 590 U.S. store closures in 2024 and more planned for 2025. Analyst Michael Patcher of Wedbush Securities noted that GameStop’s stock trades at a higher premium than Strategy’s, making it less appealing for Bitcoin exposure. GameStop’s lack of transparency—skipping investor calls and fiscal outlooks—has drawn comparisons to a “black box” hedge fund, fueling investor skepticism.