GameStop (GME) Stock: Meme Stock Goes Crypto with Half-Billion Dollar Bitcoin Buy

TLDR

Table of Contents

GameStop bought 4,710 Bitcoin worth $512.6 million, marking its first cryptocurrency investment
The purchase follows GameStop’s earlier announcement that it would add crypto to its balance sheet with no set ceiling
GameStop shares rose nearly 3% in premarket trading after the Bitcoin purchase news
The company has $4.76 billion in cash as of February 1 and maintains strong liquidity with a current ratio of 8.05
This move mirrors MicroStrategy’s corporate Bitcoin strategy that has driven volatile stock gains

GameStop made its first Bitcoin purchase on Wednesday, buying 4,710 Bitcoin worth $512.6 million. The video game retailer is following through on plans announced earlier this year to add cryptocurrency to its balance sheet.

GameStop has purchased 4,710 Bitcoin. pic.twitter.com/gGdr0BRrAv
— GameStop (@gamestop) May 28, 2025

The purchase price reflects Bitcoin trading at $108,837 on Wednesday. The world’s largest cryptocurrency recently hit a record high near $112,000 last week.

GameStop shares jumped nearly 3% in premarket trading following the announcement. The meme stock has gained about 12% this year.

CNBC first reported GameStop’s crypto intentions in February. The company confirmed its Bitcoin strategy in late March, stating it has not set a ceiling on future Bitcoin purchases.

GameStop is copying the playbook of MicroStrategy, now called Strategy. That software company bought billions in Bitcoin over recent years to become the largest corporate holder of the cryptocurrency.

MicroStrategy’s Bitcoin strategy drove rapid but volatile stock gains. GameStop appears to be betting on similar results from its crypto investment.

Strong Financial Position Enables Crypto Strategy

GameStop entered its Bitcoin buying phase from a position of strength. The company reported $4.76 billion in cash as of February 1, according to its annual report released in April.

The retailer maintains a healthy current ratio of 8.05, indicating strong liquidity. GameStop currently has more cash than debt on its balance sheet.

This financial cushion gives GameStop flexibility to make strategic investments like Bitcoin. The crypto purchase represents about 11% of the company’s reported cash position.

CEO Cohen Drives Transformation Efforts

The Bitcoin purchase marks another move by CEO Ryan Cohen to revive GameStop’s business. Cohen has focused on cutting costs and streamlining operations to ensure profitability.

GameStop has expanded its e-commerce platform and explored new market opportunities under Cohen’s leadership. The company has shown interest in digital and crypto market spaces previously.

The retailer recently priced $1.3 billion in convertible senior notes due in 2030. Proceeds are earmarked for general corporate purposes, including investments in Bitcoin.

The notes carry a 0.00% interest rate and convert to GameStop stock at about $29.85 per share. This financing provides additional resources for the company’s transformation efforts.

Wedbush Securities raised GameStop’s stock target to $13.50 with an Outperform rating. The firm cited the convertible notes offering as a factor in its analysis.

GameStop’s stock has shown recent momentum with a 24.81% return in the past week. The company maintains a $15.66 billion market cap.

Cohen faces a separate lawsuit related to $47.2 million in profits from Bed Bath & Beyond trades before that company’s bankruptcy. The lawsuit alleges “short-swing” trading violations.

GameStop Canada is rebranding back to EB Games after acquisition by entrepreneur Stephan Tetrault. The move aims to revitalize the Canadian gaming retail landscape.

The Bitcoin purchase demonstrates GameStop’s willingness to embrace alternative investment strategies. Bitcoin has gained attention as an alternative store of value during recent market conditions.

GameStop’s crypto investment comes as easing trade tensions and credit rating concerns boost Bitcoin demand. The purchase price of $512.6 million represents the company’s first official entry into cryptocurrency investing.

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