By Chris Hollingworth 
Shares of GameStop, a popular video game and collectibles retailer, experienced a significant decline of nearly 11% on May 28th following the company’s announcement of its first Bitcoin purchase. The stock closed at $31.21 on the New York Stock Exchange, according to data from Google Finance. GameStop revealed the acquisition of 4,710 Bitcoin (BTC) worth approximately $513 million on the same day. This move came after GameStop confirmed its intention to implement a Bitcoin treasury strategy on March 26, ending months of speculation and rumors among investors regarding the company’s potential entry into the cryptocurrency space.
In a similar vein, Trump Media and Technology Group (TMTG), the parent company of President Donald Trump’s Truth Social platform, witnessed a sharp decline in its shares subsequent to announcing a $2.5 billion capital raise intended for Bitcoin purchases. Since the announcement on May 27, TMTG’s stock has plummeted by over 24%.
GameStop’s foray into Bitcoin as a treasury reserve asset exemplifies a broader trend of companies embracing the cryptocurrency to safeguard cash reserves or position themselves as entities focused on Bitcoin accumulation.
During his address at the Bitcoin 2025 conference in Las Vegas, Nevada, GameStop CEO Ryan Cohen emphasized the role of Bitcoin and gold as hedges against global currency devaluation and systemic risk. Cohen highlighted the unique advantages of Bitcoin over traditional assets like gold, citing its portability, instant transferability, and transparent verification through the blockchain. He noted that securely storing Bitcoin is more straightforward compared to gold, which necessitates insurance and incurs significant expenses. Cohen also underscored Bitcoin’s scarcity and potential for appreciation, juxtaposing it with the potential inflationary pressures faced by gold due to technological advancements.
Discussing the rationale behind GameStop’s Bitcoin acquisition, Cohen pointed out the significant growth potential of Bitcoin compared to the more established gold market. While the current market capitalization of gold stands at around $20 trillion, Bitcoin’s market size is approximately $2 trillion, indicating substantial room for expansion in the digital asset space. Cohen expressed optimism regarding Bitcoin’s evolving monetization prospects, driven by its nascent stage of development and ongoing adoption trends.
In conclusion, GameStop’s strategic move towards integrating Bitcoin into its treasury operations reflects a broader corporate shift towards digital assets as viable stores of value and strategic assets in the evolving financial landscape.
