rewrite this title GameStop drops nearly 11% despite initiating bitcoin buying plan with $500 million purchase

GameStop said Wednesday it has officially bought 4,710 bitcoins, worth more than half a billion dollars, as the video game retailer began its crypto purchasing plan in a similar move made famous by MicroStrategy.

The purchase, its first investment in bitcoin, was worth $512.6 million with bitcoin’s price of $108,837 on Wednesday. The world’s largest cryptocurrency has been on a tear lately, hitting a record high near $112,000 last week, as easing trade tensions and the Moody’s downgrade of U.S. sovereign debt highlighted alternative stores of value like bitcoin.

Shares of GameStop dipped 10.9% Wednesday following the news. As of Feb. 1, the company had amassed a $4.76 billion cash pile, according to its annual report released in April.

CNBC first reported on GameStop’s intention to add cryptocurrencies on its balance sheet in February. The company confirmed its plan in late March, saying it has not set a ceiling on the amount of bitcoin it may purchase.

CEO Ryan Cohen made an appearance at the Bitcoin 2025 Conference in Las Vegas Wednesday following the announcement. In a pre-recorded video, he said GameStop’s decision to buy bitcoin is driven by macro concerns as the digital coin, with its fixed supply and decentralized nature, could serve as protection against certain risks.

“If the thesis is correct, bitcoin and gold as well can be a hedge against global currency devaluation and systemic risk,” he said. “Bitcoin has certain unique advantages compared to gold, the portability aspect of it. It’s instantly transferable across the globe.. It’s instantly verified via the blockchain… there’s the scarcity element of it as well.”

GameStop is following in the footsteps of software company MicroStrategy, now known as Strategy, which bought billions of dollars worth of bitcoin in recent years to become the largest corporate holder of the flagship cryptocurrency. That decision prompted a rapid, albeit volatile, rise for Strategy’s stock.

“GameStop is following GameStop’s strategy. We’re not following anyone else’s strategy,” Cohen said.

GameStop’s foray into cryptocurrencies marks the latest effort by Cohen to revive the struggling brick-and-mortar business. Under Cohen’s leadership, GameStop has focused on cutting costs and streamlining operations to ensure the company is profitable.