Reuters
- GameStop announced the purchase of 4,710 bitcoin tokens on Wednesday.
- At current prices, that amount is worth about $513 million.
- GameStop is the latest in a line of corporates adding bitcoin to their balance sheets.
GameStop has made good on a promise to buy bitcoin, announcing on Wednesday that it purchased 4,710 tokens.
At current prices, that’s worth about $513 million. The purchase comes in a bullish stretch for bitcoin, with the apex token surging nearly 50% from an April low and claiming fresh all-time highs above $110,000 in the last week.
GameStop stock was down as much as 2% to $34.36 after initially shooting higher in premarket trading after the company announced its bitcoin buy. Bitcoin was trading at $109,035 Wednesday morning in New York.
The gaming retailer first outlined plans to buy crypto in March, funded through a $1.3 billion convertible bond sale.
Corporate investments in crypto are becoming increasingly common. Like other firms, GameStop has likely taken inspiration from Strategy’s playbook. The business software firm’s stock has shot up 117% in a year as it continues to add to its stash of the crypto. The company owns more than 580,000 tokens worth $33 billion.
The buy-and-hold strategy is taking hold with more companies. Aside from GameStop, Trump Media & Technology Group announced plans to raise $2.5 billion for a bitcoin treasury on Tuesday. Others including Tesla, Acurx Pharmaceutical, and Riot Platforms have joined the trend.
In Japan, Metaplanet, a small company that previously focused on hotel management, recently pivoted to become a bitcoin holding company. The stock is up 275% this year.
