GameStop shares sink 13% after first BTC buy
GameStop's shares fell nearly 11% on May 28 after announcing the purchase of 4,710 Bitcoin (BTC) valued at approximately $513 million, leading to a sell-the-news reaction. The stock closed at $31.21 on the New York Stock Exchange. GameStop's Bitcoin acquisition strategy was confirmed on March 26 amid investor speculation. Trump Media and Technology Group's shares also dropped over 24% following a $2.5 billion capital raise for Bitcoin purchases. GameStop's adoption of Bitcoin reflects a trend of companies using it as a treasury reserve asset. CEO Ryan Cohen highlighted Bitcoin's advantages over gold, including portability, instant transferability, and lower security costs. He noted Bitcoin's scarcity and potential for higher upside compared to gold, which has a market cap of around $20 trillion versus Bitcoin's $2 trillion.
