GameStop Corp, an American video game retailer, announced the acquisition of 4710 Bitcoin as part of a new strategy. This event has impacted the company's stock price.
GameStop's Bitcoin Acquisition
GameStop reported the purchase of 4710 Bitcoin but did not disclose details regarding the purchase date or amount. Currently, the company's Bitcoin reserve is valued at $512.5 million at the current price of $108,832. This decision stems from an update to the investment policy approved by the board in March.
GameStop's Strategy Behind Bitcoin Purchase
Since Ryan Cohen's appointment as CEO in September 2023, the company has undergone significant changes. GameStop currently holds approximately $4.775 billion in cash reserves. The company is planning to raise $1.3 billion in debt to finance its Bitcoin acquisitions, positioning itself as the 13th largest company holding Bitcoin.
GME Stock Rally
GameStop shares saw a 26% increase in May, with over 20% of that gain occurring in the last week. At the time of writing, shares were trading 4% higher in premarket hours on Wednesday. The company is set to announce its Q1 2025 results on June 9.
GameStop's Bitcoin acquisition could significantly influence the company's future investments and retail investor interest, aligning with the broader trend of major corporations diversifying their assets.
