GameStop, the video game retailer once at the center of a meme stock frenzy, has disclosed a $515m Bitcoin purchase, deepening its pivot toward digital assets at a time when its core retail operations continue to struggle.
Between May 3 and June 10, the company acquired 4,710 Bitcoin in cash, a move that follows a March decision by its board to adopt Bitcoin as a treasury reserve asset.
The announcement came alongside disappointing first-quarter results that saw revenue fall 17% to $732.4m, down from $881.8m a year earlier. Shares slid 4.6% in after-hours trading.
GameStop Struggles To Catch Up With Digital Gaming Boom
Based in Grapevine, Texas, GameStop has faced mounting challenges in keeping pace with the gaming industry’s shift from physical to digital.
Sales in its hardware and accessories segment, which includes new and pre-owned games, dropped 32%.
Despite efforts to expand its e-commerce presence and digital offerings, the company has yet to offset the ongoing decline in brick-and-mortar sales meaningfully.
Bitcoin Joins GameStop’s Long-Term Asset Playbook
This is not GameStop’s first crypto experiment. In 2022, it launched a digital wallet aimed at tapping into the Web3 trend but shuttered the project a year later, citing regulatory uncertainty. Its latest foray, however, positions Bitcoin as a long-term strategic asset. In a statement, GameStop said it may use part of its cash reserves or proceeds from future debt or equity sales to expand its Bitcoin holdings.
The move mirrors the high-profile strategy of MicroStrategy, which has famously accumulated large amounts of Bitcoin on its balance sheet. More than 80 public companies have followed suit, including Trump Media.
Crypto Pivot Highlights GameStop’s Struggle To Evolve
GameStop’s embrace of Bitcoin appears to be both a financial bet and a signal to its retail investor base, which has historically shown strong interest in crypto-related plays.
Yet, the market’s response has been cautious. GameStop’s stock fell nearly 20% in the days following the disclosure, suggesting skepticism among investors. While some view the Bitcoin purchase as a distraction from operational headwinds, others see it as a bold attempt to reposition the company as digital-first, even as the broader industry transitions to streaming and downloadable content.
With national retailers shuttering stores and physical game sales declining, GameStop’s bet on Bitcoin may offer some financial diversification. Whether it can also help reverse its fortunes remains far less certain.
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