GameStop Invests in Bitcoin, Stock Rises 10%
Key Takeaways
GameStop has decided to include Bitcoin (BTC) in its reserves as part of its corporate strategy. With this move, the company follows the example of MicroStrategy, which significantly boosted its stock value through BTC investments. The decision has sparked mixed reactions: while some experts see it as a positive step for the Bitcoin market, others warn of potential overheating.
GameStop Bets on Bitcoin Reserves
The U.S.-based video game retailer GameStop (GME) has officially announced its decision to invest a portion of its corporate reserves in Bitcoin. The company’s board unanimously approved this strategy. With this step, GameStop joins a growing list of publicly traded companies using BTC as a store of value.
The decision follows public demands from investors, including Matt Cole, CEO of Strive Asset Management. He urged GameStop CEO Ryan Cohen to convert excess cash into Bitcoin.
Market Reactions to GameStop’s Decision
The announcement triggered mixed reactions. Michael Saylor, founder of MicroStrategy and a pioneer of the BTC strategy, called the move the “right decision.” According to GameStop’s latest 10-K filing with the U.S. Securities and Exchange Commission (SEC), the approach closely resembles MicroStrategy’s strategy, including potential financing through debt or stock issuance.
However, some analysts are skeptical of this development. Market observer Checkmatey warns that companies like GameStop might see BTC as a “last resort.” In his view, this could be a sign of a market bubble.
Bitcoin as a Corporate Strategy – A Success Model?
More and more publicly traded companies are turning to Bitcoin. According to Bitcoin Treasuries, 88 companies currently hold a total of 665,030 BTC. This makes them the second-largest group of institutional Bitcoin holders, after investment funds.
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The results of this strategy so far have been impressive. Since adopting its BTC strategy in 2020, MicroStrategy (MSTR) has seen a stock price increase of over 2,000%. Similarly, Japanese company Metaplanet experienced a 2,240% stock surge after introducing Bitcoin reserves in April 2024.
How Is the GME Stock Reacting?
Following the announcement of its Bitcoin strategy, GameStop’s stock rose by 10% on Wednesday. Whether this trend will continue in the long run remains to be seen. Investors speculate that GME might experience a similar stock performance as MicroStrategy or Metaplanet.
Our Assessment
GameStop’s decision to include Bitcoin in its reserves could lead to short-term stock gains. However, the long-term success of this strategy depends on several factors, including the overall development of the crypto market and investor confidence. While BTC is increasingly accepted as a store of value, price volatility remains high. Investors should be aware of both the opportunities and risks before betting on a similar trajectory as MicroStrategy or Metaplanet.
| Symbol | BTC |
| Coin type | Alt Coin |
| Transaction Speed | Slow |
| Pros |
|
| Cons |
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| Further practical applications | |
| Price | $83,132.00 |
| 24h % | 1.04 % |
| 7d % | -1.55 % |
| 30d % | 3.96 % |
| 60d % | -18.87 % |
| 1y % | 18.52 % |
| Market Cap | $1,649,637,879,882.00 |
| Max. Supply | 21,000,000.00 |
| Official Links | Website | Whitepaper | Source Code |
| Socials | Reddit | X | Message Board |
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