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GameStop buys Bitcoin worth $513 million

The GameStop saga 2.0 starts with the first purchase of 4,710 Bitcoin worth $513 million.

By Mike Hesp
• 2 min read
GameStop buys Bitcoin worth $513 million

The GameStop saga 2.0 starts with the first purchase of 4,710 Bitcoin worth $513 million. Is a new GME stock rally starting now?

It’s a historic move: after crypto and GameStop fans waited two months, the infamous video game retailer is now announcing its first-ever Bitcoin purchase.

According to a brief press release, GameStop bought a whopping 4,710 BTC, currently worth $513 million. Details on the average purchase price haven’t been disclosed yet.

At the end of March, GameStop said it wanted to follow a Bitcoin investment strategy, inspired by Strategy and Michael Saylor. This would involve using a portion of the existing cash reserves first.

On February 1, GameStop had $4.8 billion in cash on hand. If that amount were fully invested in Bitcoin (at the current price), it would come to roughly 44,000 BTC.

Keith Gill, the guy behind the legendary GameStop short squeeze of 2021, popped back up on social media last spring. He has not yet made any official statements about the Bitcoin strategy.

Still, the GME share reacted positively to the news: it jumped 6% to $35 right after the purchase was announced. Since the start of the year, the stock is up about 14%.

So far, it’s mainly companies with negative cash flow or stagnant share prices buying Bitcoin. With Strategy, Metaplanet, and Semler, GameStop has some successful examples.

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