GameStop, the video game retailer that became iconic during the meme stock craze, has announced a significant $515 million investment in Bitcoin, marking a substantial shift towards digital assets amid ongoing struggles in its primary retail operations.
Between May 3 and June 10, the company purchased 4,710 Bitcoin in cash. This acquisition follows a decision made by its board in March to designate Bitcoin as a treasury reserve asset, highlighting the retailer’s evolving financial strategy.
The announcement coincided with the release of its disappointing first-quarter results, which revealed a 17% decline in revenue to $732.4 million, down from $881.8 million during the same period the previous year. Following the news, GameStop’s shares fell by 4.6% in after-hours trading.
GameStop Struggles To Catch Up With Digital Gaming Boom
GameStop, headquartered in Grapevine, Texas, has been grappling with challenges as it tries to keep up with the gaming industry’s transition from physical to digital formats.
$GME JUST IN : “GameStop purchased 4,710 Bitcoin between May 3, 2025 and June 10, 2025 for cash.”
This means Bitcoin was not part of Q1’s balance sheet or earnings. It’ll be recognized in Q2 FY2025.
No Bitcoin on the Balance Sheet. pic.twitter.com/IEA9X7ZISM
— Han Akamatsu 赤松 (@Han_Akamatsu) June 10, 2025
The decline was particularly pronounced in its hardware and accessories segment, where sales plummeted by 32%. Despite ongoing efforts to enhance its e-commerce capabilities and digital product offerings, these initiatives have not adequately countered the drop in brick-and-mortar sales.
Bitcoin Joins GameStop’s Long-Term Asset Playbook
This latest acquisition marks not GameStop’s first attempt at engaging with cryptocurrency. The retailer launched a digital wallet in 2022 to capitalize on the Web3 trend, but ultimately abandoned the project a year later due to regulatory uncertainties. The current Bitcoin investment, however, is being positioned as a long-term strategic asset, with GameStop indicating that it may fund future Bitcoin purchases through cash reserves or proceeds from forthcoming debt or equity sales.
This strategy is reminiscent of that employed by MicroStrategy, known for its extensive Bitcoin holdings, and is being emulated by over 80 other public companies, including Trump Media.
Crypto Pivot Highlights GameStop’s Struggle To Evolve
GameStop’s decision to invest in Bitcoin not only represents a financial maneuver but also serves as a message to its retail investor base, which has shown strong interest in cryptocurrency-related investments in the past.
Nonetheless, the market’s reaction has been cautious. In the days following the announcement, GameStop’s stock experienced a nearly 20% decline, indicating investor skepticism. While some view the Bitcoin acquisition as a potential distraction from persistent operational challenges, others consider it a bold shift to position the company as digital-first, even as the industry moves increasingly toward streaming and downloadable content.
As national retailers close physical locations and sales of conventional games dwindle, GameStop’s bet on Bitcoin may provide some financial diversification. However, whether this strategy can help the retailer recover from its ongoing difficulties remains uncertain.
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