GameStop Shares Fall Nearly 6% as Investors Sell After Bitcoin Purchase Disclosure
GameStop’s (GME) stock dropped by almost 6% on Thursday as investors reacted to the company’s announcement of its initial bitcoin acquisition.
On Wednesday morning, GameStop revealed it had purchased 4,710 bitcoins, part of its broader crypto treasury strategy unveiled earlier this year. The move followed a $1.3 billion capital raise in March, aimed at funding crypto investments.
Despite expectations, the purchase—valued at roughly $500 million—was seen as modest relative to GameStop’s $14 billion market capitalization and significant cash reserves. The timing and specific prices of the bitcoin buys were not disclosed.
The stock had rallied more than 60% in the weeks before the announcement, recovering from earlier market declines tied to tariff concerns. Since the reveal, shares have pulled back nearly 20%, as some investors appeared to cash out following the news.
Analysts say this drop could reflect a classic “sell the news” event or growing investor fatigue around the steady stream of corporate bitcoin treasury announcements flooding the market recently.
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