Justin Pope, The Motley Fool
5 min read
In This Article:
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GameStop has raised a tremendous amount of money over the past year and has begun acquiring Bitcoin as a digital asset.
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Be wary of comparing GameStop to Strategy, which trades at a steep premium to its Bitcoin holdings.
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Bitcoin isn't a game changer for GameStop, at least not yet.
GameStop (NYSE: GME), the subject of a meme stock craze several years ago, is making some big moves.
The embattled video game retailer has raised a tremendous amount of money and begun acquiring Bitcoin. It recently announced purchases made between May 3 and June 10 totaling 4,710 Bitcoins, at a cost of over $500 million.
GameStop has declined nearly 30% since the start of 2025. The pivot to Bitcoin puts GameStop on a similar path to Strategy (MicroStrategy) (NASDAQ: MSTR), and investors hope it will produce similar results. Strategy's share price is up nearly 150% over the past year alone.
What could be in store for GameStop's shareholders? Here is what GameStop's potential Bitcoin strategy could mean for the stock's future.
Investors should understand that it's still early in GameStop's new Bitcoin strategy, and the extent of the company's commitment to the flagship cryptocurrency remains unclear. Strategy has built practically its entire company around Bitcoin; the majority of Strategy's market cap comes from its underlying Bitcoin holdings.
GameStop is just starting to acquire Bitcoin and has a ways to go before the flagship cryptocurrency will represent a meaningful portion of the stock's value.
Today, GameStop's 4,710 BTC has a market value of approximately $500 million, which makes it roughly 5% of the stock's $10 billion market cap. The company will have to acquire much more Bitcoin to represent a sizable portion of its assets, which helps explain why GameStop is continuing to raise money despite exiting Q1 2025 with $6.4 billion in cash and equivalents.
The company recently announced a convertible debt offering, which could raise $2.25 billion, further bolstering GameStop's already robust cash position. It seems GameStop could soon add more Bitcoin to its balance sheet. Assuming that's the plan, it's worth taking a closer look at Strategy and how it could relate to GameStop.
GameStop and Strategy do have similarities. Unfortunately, the most direct link between the two is that both are struggling outside of their Bitcoin interests.
