• GameStop purchased 4,710 BTC worth over $500 million.
  • The company’s move follows an earlier policy update to use bitcoin as a treasury reserve asset.

GameStop has officially joined the ranks of companies using bitcoin as a treasury reserve asset. On Wednesday, the video game retailer revealed it had purchased 4,710 bitcoin, worth more than $500 million at the time of acquisition, as part of its updated investment policy announced in March.

Once a dominant player in gaming retail, GameStop has struggled to stay relevant as digital game downloads and streaming take over the industry. The company’s financials continue to reflect the shift, with annual declines in net sales reported despite lingering stock inflation from the 2021 short squeeze drama fueled by Reddit’s r/WallStreetBets.

GameStop’s foray into crypto has rattled some investors, with the company’s stock dipping after each crypto-related announcement. Volatility concerns have loomed large, especially given bitcoin’s historic price swings. Still, the move echoes decisions by major firms like Tesla, Coinbase, and Block, each of which has committed over $1 billion to bitcoin holdings.

A Political Backdrop to the Crypto Boom

GameStop’s bitcoin play comes amid shifting political tides. Under the Trump administration, the federal government has embraced cryptocurrency, launching a Strategic Bitcoin Reserve and enabling Trump’s media company to raise $2.5 billion to buy bitcoin.

In contrast, the Biden administration took a harder stance on crypto, citing links to fraud and corruption.

Trump’s personal involvement has drawn scrutiny. His memecoin venture and a private White House dinner with top holders raised concerns from Democrats, prompting senators Chuck Schumer and Jeff Merkley to co-sponsor the “End Crypto Corruption Act.”

“Currently, people who wish to cultivate influence with the president can enrich him personally by buying cryptocurrency he owns or controls,” Senator Merkley said in a press release. “This is a profoundly corrupt scheme. It endangers our national security and erodes public trust in government.”

Despite the backlash, bipartisan support remains elusive, and bitcoin prices continue to soar, recently topping $110,000. GameStop’s bold bet on crypto positions it squarely in the middle of this financial and political moment.

Edited by Harshajit Sarmah