GameStop jumps on purchase of more than $500 million in bitcoin
GameStop is ostensibly a brick-and-mortar video game and collectibles retailer. Effectively, it’s a meme stock turned successful T-bill fund that, as of this morning, has officially diversified into Bitcoin.
The company announced that it purchased 4,710 bitcoin, or at least $510 million worth, based on prevailing prices through May 28, joining the likes of Michael Saylor’s Strategy in holding crypto on its balance sheet.
GameStop’s move to adopt a bitcoin treasury strategy, seemingly the worst-kept secret in finance, was unveiled in tandem with its quarterly results on March 25, followed by a $1.3 billion to $1.5 billion offering of convertible senior notes to raise money for, among other things, purchasing crypto.
That offering was expected to close in early April. Bitcoin is up about 30% since then, but traders are rewarding GameStop in the premarket even after management missed out on that massive rally only to buy now: shares spiked as much as 7% in premarket trading on Wednesday before paring a chunk of that gain, on the heels of a 6% advance on Tuesday.
The stock is now trading at its highest level since last year’s meme mania spurred by the return of Keith Gill, aka Roaring Kitty, to the scene.
