Popular videogame retailer GameStop has officially entered the Bitcoin game. The company just announced a massive leap in the crypto sector, purchasing 4,710 Bitcoins in a major financial shift. At today’s exchange rate, the purchase amounts to around $500 million—positioning GameStop as one of the largest corporate BTC holdings in the world.
This purchase catapulted the gaming company, which now owns the 11th-largest Bitcoin treasury among publicly traded companies. Moreover, GameStop’s 4,710 BTC acquisition accounts for approximately 0.0224% of the total supply.
How Did GameStop Get the Money?
Earlier this year, GameStop raised $1.3 billion through a convertible bond offering, giving it extra liquidity to make strategic investments.
What’s interesting is that this Bitcoin purchase only accounts for about one-third of that bond money. So GameStop still has plenty of cash on hand, leaving room for more investments—or even more Bitcoin purchases down the line.
From Video Games to Bitcoin
Once a struggling game retailer doomed to cease to exist given the rise of digital gaming—GameStop has reinvented itself over the last few years.
This shift started with the rise of meme stock culture, as retail traders pumped GameStop’s stock price to unbelievable highs, trying to squeeze short sellers who had bet against the company. What began as a grassroots movement among retail investors turned into one of the biggest short squeezes in stock market history, with GameStop’s price skyrocketing in early 2021.
This pump allowed GameStop to reinvent its business model. While videogame sales are still the core of the company, GameStop took a step into innovation, investing in e-commerce, digital sales, blockchain technology, and cryptocurrency to diversify its business.
For readers exploring new exchanges, WEEX is currently offering early users a chance to claim up to 100 USDT just for signing up and verifying — no strings attached.
