From Nasdaq
June 18, 2025 4:35 am:

GameStop (NYSE: GME) is making bold moves by acquiring 4,710 Bitcoins at a cost of over $500 million. The company’s share price has declined by nearly 30% since the start of 2025, but investors are hopeful this Bitcoin strategy will yield positive results.

GameStop’s recent pivot to Bitcoin aims to boost its stock value, but it currently only represents about 5% of the company’s $10 billion market cap. The company is raising funds through a convertible debt offering to bolster its cash position and potentially acquire more Bitcoin in the future.

GameStop’s foray into Bitcoin mirrors MicroStrategy’s (NASDAQ: MSTR) strategy, but both companies face risks. GameStop’s retail business is declining, while MicroStrategy’s software business is stagnant. Additionally, investing heavily in Bitcoin poses risks of potential share dilution and downside price movement.

Investors should view GameStop’s Bitcoin investment cautiously, as it adds risk to an already speculative stock. While the move is headline-worthy, the company’s long-term path and commitment to Bitcoin remain unclear. It remains to be seen how GameStop’s stock will respond to Bitcoin price movements in the future.

Read more at Nasdaq: GameStop Spent Over Half a Billion Dollars Buying Bitcoin. Here’s What That Could Mean for the Struggling Stock