On May 29, GameStop revealed it had bought 4,710 bitcoins, valued at more than US$500 million at the time of purchase. This bold move is part of a broader shift in the company’s financial strategy as it tries to stay relevant in today’s fast-changing gaming and investment world.
If you’ve followed GameStop in recent years, you’ll know the video game retailer has faced ongoing challenges. Traditional retail outlets like GameStop have struggled as more gamers turn to digital downloads and online platforms. Add to that the wild stock market ride of 2021, when the Reddit group r/WallStreetBets sent the company’s share price soaring, and you’ve got a company that’s had its fair share of ups and downs.
While GameStop’s stock is still trading above its level before the 2021 frenzy, the company has continued to post yearly sales declines. In response, it has made a dramatic shift—turning to cryptocurrency.
Why GameStop is buying bitcoin
In March, GameStop told investors it would update its investment strategy and hold bitcoin as part of its treasury reserves. The recent purchase shows the company is serious about following through.
This move puts GameStop in line with big names like Tesla, Coinbase, and Block, all of which have used bitcoin to boost their balance sheets. Each of these companies holds more than US$1 billion in bitcoin.
However, each time GameStop has made an announcement related to crypto, its stock has taken a hit. Many investors remain wary of digital currencies’ unpredictable nature. Still, GameStop appears committed to exploring this new territory, likely hoping the gamble will pay off in the long term.
Crypto politics in the U.S. and the Trump connection
You might be wondering why bitcoin prices are soaring right now. In May, bitcoin hit an all-time high of over US$110,000, a big leap from its April low of about US$75,000. This jump didn’t happen on its own. A key reason behind it is political support from the current U.S. administration.
Under President Trump, the U.S. government has taken a new stance on crypto, even proposing the creation of a Strategic Bitcoin Reserve. Trump’s media company also plans to raise US$2.5 billion to invest in bitcoin.
Trump’s involvement goes even deeper. He recently hosted a private dinner at the White House for top holders of his personal memecoin — a type of cryptocurrency tied more to internet culture than financial value. Critics argue this blurs the lines between politics and personal profit.
Democrats have responded strongly. Seventeen Democratic senators, including Chuck Schumer and Jeff Merkley, introduced the “End Crypto Corruption Act.” They argue that allowing a sitting president to benefit financially from cryptocurrency invites corruption and weakens public trust.
“This is a profoundly corrupt scheme,” said Senator Merkley in a statement. “It endangers our national security and erodes public trust in government.”
Despite these concerns, it’s unlikely to move forward in Congress unless the bill gains bipartisan support.
GameStop bets big on the future of crypto
GameStop’s bitcoin purchase marks a major change in direction. The company is no stranger to risk, having survived a massive market shake-up and a shift in consumer habits. Now, by joining the likes of Tesla and Coinbase, GameStop is making it clear that it sees bitcoin as a digital asset and a key part of its financial future.
Whether this move will turn things around remains to be seen. But if you’re watching the future of crypto or the fate of once-struggling retailers, GameStop is now a name to keep an eye on once again.
