A general view of the GameStop logo in one of the shops in the city centre of Cologne, Germany.
ying tang | nuphoto | Getty Images
GameStop said it officially bought 4,710 Bitcoin, worth more than $5 billion, as video game retailers launched crypto buying plans in a similar move that became famous by MicroStrategy.
The purchase, the first investment in Bitcoin, was worth $512.6 million on Wednesday, with Bitcoin priced at $108,837. The world’s biggest cryptocurrency has been in tears recently, reaching a record high of nearly $112,000 last week.
GameStop shares rose almost 3% in pre-market trading following the news. Memestock has risen by around 12% this year. As of February 1, the company had collected $4.766 billion in cash piles, according to its annual report released on April 1.
CNBC first reported on Gamestop’s intention to add cryptocurrency to its balance sheet in February. The company reviewed its plans in late March and said it had not set a cap on the amount of Bitcoin it could buy.
GameStop follows in the footsteps of software company MicroStrategy, now known as the strategy, and has recently purchased billions of dollars worth of Bitcoin, becoming the largest corporate holder of flagship cryptocurrency. The decision prompted a rapid, volatile, but rising prompt promotion due to the strategy’s stocks.
CameStop’s foray into cryptocurrency shows CEO Ryan Cohen’s latest efforts to bring back the brick and mortar stores that are struggling with. Under Cohen’s leadership, GameStop focuses on reducing costs and streamlining the business to ensure business is profitable.
