GameStop purchased 4,700 Bitcoins for $512.6 million, potentially reviving the struggling gaming resale industry

From Nasdaq

May 28, 2025 12:40:00 PM:

GameStop (NYSE: GME) made a bold move by purchasing 4,700 Bitcoins for $512.6 million. This shift to Bitcoin could potentially revive the struggling gaming resale industry, but success will depend on various factors like the price of Bitcoin and demand. The company could amass around 43,730 BTC before needing additional funding.

However, GameStop faces risks of dilution due to share sales, similar to MicroStrategy (NASDAQ: MSTR). The company may need to liquidate its core business to convert funds to BTC, but its primary asset is old technology inventory. MicroStrategy’s share count has doubled since 2021, leading to rising debt and complicated capital structure.

Sell-side data for GameStop shows mixed signals, keeping volatility high in 2025. Only one analyst, Wedbush, gives a Sell rating with a price target reflecting a potential 50% downside. Short interest is at a 12-month high of 11%, indicating potential resistance to price gains. Institutional interest remains speculative, possibly tied to GameStop’s BTC investment.

Read more at NASDAQ.: GameStop Buys Bitcoin: Smart Strategy or Big Mistake?