GameStop is making a significant move into the cryptocurrency market by investing in bitcoin.
On Wednesday, the prominent video game retailer announced its acquisition of 4,710 bitcoin, marking its initial foray into the cryptocurrency sector. This decision follows a recent update to the company’s investment policy, which now categorizes bitcoin as a “treasury reserve asset.”
The bitcoin purchase, valued at approximately $505 million on the day of the announcement, comes shortly after GameStop completed a private offering of 0.00% convertible senior notes, generating net proceeds of $1.48 billion.
According to a filing with the Securities and Exchange Commission regarding the offering, GameStop stated that the net proceeds would be allocated for “general corporate purposes, including the acquisition of Bitcoin in a manner consistent with the Company’s Investment Policy.”
In March, GameStop adjusted its investment strategy, allowing “a portion of our cash or future debt and equity issuances to be invested in Bitcoin,” a decision that received unanimous approval from the board.
The company noted, “We have not set a maximum amount of Bitcoin we may accumulate, and may sell any Bitcoin we may acquire,” underscoring a flexible approach to its cryptocurrency investments.
Despite facing challenges in recent years, the video game retailer, which boasted over 3,200 stores worldwide as of early February, continues to pursue innovative strategies to adapt to changing market conditions.
As of Wednesday, the company’s market capitalization was approximately $14.3 billion, indicating its ongoing significance in the retail landscape.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GME | GAMESTOP CORP. | 32.83 | -2.21 | -6.29% |
