GameStop Shares Drop 11% After Announcing Major Bitcoin Investment
Shares of GameStop fell sharply on May 28 after the company confirmed the purchase of over $500 million worth of Bitcoin, marking its official entry into the crypto treasury movement.
The stock closed at $31.21, down nearly 11% on the day, as investors appeared to engage in a classic “sell-the-news” reaction following weeks of speculation.
GameStop Buys 4,710 Bitcoin
GameStop revealed it had purchased 4,710 BTC, worth approximately $513 million at current prices. The company had previously signaled its interest in building a Bitcoin-based treasury back in March, and the latest announcement confirms its commitment to that strategy.
The move aligns GameStop with a growing cohort of public companies holding Bitcoin as a strategic reserve asset, mirroring approaches taken by firms such as Strategy (formerly MicroStrategy), Metaplanet, and Semler Scientific.
Trump Media Shares Also Plunge
Meanwhile, Trump Media and Technology Group (TMTG) — the parent company of Truth Social — also saw its stock price plunge. Shares have dropped over 24% since May 27 after the company announced plans to raise $2.5 billion in capital to fund Bitcoin acquisitions.
The volatility reflects broader investor uncertainty surrounding corporate moves into digital assets, even as Bitcoin itself remains near record highs.
Bitcoin as a Hedge Against Inflation
At the Bitcoin 2025 conference in Las Vegas, GameStop CEO Ryan Cohen defended the company’s decision to allocate funds into Bitcoin, describing it as a long-term hedge against fiat currency devaluation.
“Bitcoin and gold can be hedges against global currency devaluation and systemic risk,” Cohen said.
“Bitcoin offers portability, instant global transferability, and blockchain-based authentication, which makes it far more efficient and secure than gold.”
Cohen also pointed to Bitcoin’s fixed supply cap as a key advantage over gold, which can potentially see its supply increase with new extraction technologies.
Despite short-term volatility in GameStop’s share price, the company’s bold pivot into Bitcoin signals a continuing trend of traditional firms exploring crypto as a treasury reserve strategy amid macroeconomic uncertainty.
