GameStop shares sink 13% after first BTC buy
Shares of online game and collectibles retailer GameStop dropped practically 11% on May 28 after the corporate introduced its first Bitcoin buy, triggering a traditional sell-the-news response.
The inventory closed at $31.21 on the New York Stock Exchange, in keeping with Google Finance.
The firm introduced the acquisition of 4,710 Bitcoin (BTC) valued at roughly $513 million on May 28. GameStop confirmed plans to create a BTC treasury technique on March 26, following months of investor hypothesis and rumors that it might start accumulating the cryptocurrency.
Trump Media and Technology Group (TMTG), the guardian firm of President Donald Trump’s Truth Social platform, additionally noticed its shares plunge after asserting a $2.5 billion capital elevate to buy Bitcoin. Since the May 27 announcement, TMTG inventory has dropped over 24%.
GameStop’s transfer to undertake Bitcoin as a treasury reserve asset displays a rising pattern amongst corporations turning to Bitcoin to safeguard money reserves or reposition themselves as Bitcoin acquisition automobiles.
Related: Bitcoin accepted at quick meals chain Steak ’n Shake from May 16
Bitcoin as a hedge towards fiat forex inflation
Speaking on the Bitcoin 2025 convention in Las Vegas, Nevada, GameStop CEO Ryan Cohen stated that “Bitcoin and gold can be hedges against global currency devaluation and systemic risk.” According to Cohen:
“Bitcoin has certain unique advantages compared to gold. The portability aspect, it’s instantly transferable across the globe, whereas gold is bulky and very expensive to ship, the authenticity is instantly verified via the blockchain. You can easily secure Bitcoin in a wallet, whereas gold requires insurance, and it is very expensive.”
The CEO additionally cited absolutely the shortage of Bitcoin and the potential for gold’s inflation fee to extend attributable to technological developments as a consider favor of selecting Bitcoin over gold for long-term worth storage.
Bitcoin additionally has a larger potential upside because the digital asset continues to be in its infancy and continues to be monetized. in keeping with Cohen.
“Gold is a more mature market. It is roughly around $20 trillion in market capitalization, whereas Bitcoin today is about $2 trillion,” the GameStop CEO stated.
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