GameStop shares sink 11% after BTC purchase

Shares of video game and collectibles retailer GameStop dropped nearly 11% on May 28 after the company announced its first Bitcoin purchase, triggering a classic sell-the-news reaction.

The stock closed at $31.21 on the New York Stock Exchange,accordingto Google Finance.

The companyannounced the purchase of 4,710BitcoinBTC$107,616BitcoinChange (24h)1.22%Market Cap$2.13TVolume (24h)$30.8BView Morevalued at roughly $513 million on May 28. GameStopconfirmed plans to create a BTC treasury strategyon March 26, following months of investor speculation and rumors that it would begin accumulating the cryptocurrency.

Trump Media and Technology Group (TMTG), the parent company of President Donald Trump’s Truth Social platform, also saw its shares plunge afterannouncing a $2.5 billion capital raise to purchase Bitcoin. Since the May 27 announcement, TMTG stock has dropped over 24%.

GameStop’s move to adopt Bitcoin as a treasury reserve asset reflects a growing trend among companies turning to Bitcoin to safeguard cash reserves or reposition themselves as Bitcoin acquisition vehicles.

Related:Bitcoin accepted at fast food chain Steak ’n Shake from May 16

Bitcoin as a hedge against fiat currency inflation

Speaking at the Bitcoin 2025 conference in Las Vegas, Nevada, GameStop CEO Ryan Cohen said that “Bitcoin and gold can be hedges against global currency devaluation and systemic risk.” According to Cohen:

The CEO also cited theabsolute scarcity of Bitcoinand the potential for gold’s inflation rate to increase due to technological advancements as a factor in favor of choosing Bitcoin over gold for long-term value storage.

Bitcoin also has a greater potential upside since the digital asset is still in its infancy and continues to be monetized. according to Cohen.

“Gold is a more mature market. It is roughly around $20 trillion in market capitalization, whereas Bitcoin today is about $2 trillion,” the GameStop CEO said.

Magazine:Bitcoin miners steamrolled after electricity thefts, exchange ‘closure’ scam: Asia Express

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