GameStop Stock Dives After Retailer Announces $512 Million Bitcoin Buy
GameStop's stock price fell over 10% to $31.45 after announcing its first Bitcoin purchase of 4,710 Bitcoin, valued at $512 million. The price dropped as low as $30.73 before slightly recovering. Despite the daily decline, GME is up nearly 10% over the past week and 14% over the month. The company had raised $1.5 billion to fund its Bitcoin acquisitions, a move anticipated since late March when it added Bitcoin as a treasury asset. CEO Ryan Cohen's prior association with Bitcoin advocate Michael Saylor hinted at this strategy. While many firms have adopted cryptocurrency treasuries, GameStop's initial stock rise was followed by a decline after revealing its funding approach. Other companies have seen significant gains from similar moves, particularly with assets like Solana and Ethereum. GameStop remains a larger entity compared to many recent crypto adopters, leveraging its established market presence.
