GameStop invests $500 million in Bitcoin – risk or opportunity?

GameStop invests $500 million in Bitcoin – risk or opportunity?

GameStop, known for its role in the video game market, has made notable moves to position itself in the crypto sector in recent months. Between May and June 2025, the company invested over $500 million in Bitcoin, equivalent to more than 4,700 Bitcoin. This measure represents a significant part of its strategy, as Bitcoin investment accounts for around five percent of the approximately ten billion dollar market capitalization, reports Foonds.

To fund this crypto-focused investment, GameStop also raised $2.25 billion through the issuance of convertible notes. These unsecured bonds with a zero percent interest rate mature in 2032, allowing the company financial flexibility. Interestingly, a $1.5 billion issuance of convertible notes was also completed, with the initial buyer's option for an additional $200 million fully exercised, according to a report by The shareholder emerges.

Financial situation and challenges

As of the end of the first quarter of 2025, GameStop had $6.4 billion in cash and equivalents. This includes more than $4 billion in cash generated by the company through the end of 2024. Still, the company is grappling with a 12.9 percent decline in U.S. sales, resulting in revenue falling from $881.8 million to $732.4 million.

The situation is complicated as the operating loss was reduced from $50.6 million to $10.8 million and the company recorded a net profit of $44.8 million. Nevertheless, GameStop's share price has lost around 30 percent of its value since the beginning of the year, reflecting the uncertainties in trading.

Strategic change of course

GameStop is increasingly following the example of Strategy, led by Michael Saylor, which has been aggressively buying Bitcoin since August 2020. Strategy now holds over 500,000 Bitcoin, which corresponds to around 2.5 percent of the total available amount of 21 million Bitcoin. Nathan Cox, CIO of Two Prime Digital Assets, sees this as a strategic opportunity for GameStop in the highly speculative Bitcoin market.

It remains to be seen how these investments will affect GameStop's future performance. Despite the potential that the cryptocurrency offers, experts warn about the high price fluctuations and uncertainty associated with Bitcoin investing. Investors should therefore act cautiously and keep an eye on the risks.