GameStop Just Leveled Up—With Bitcoin as Its Power-Up

GameStop's bold move into Bitcoin sparks a stock rally—but is this a financial revolution or just another risky bet?

Editorial Team (ET)May 8, 2025

GameStop (NYSE: GME) made waves in the financial world once again after confirming plans to invest in Bitcoin, sending its stock soaring nearly 15% on Wednesday. The announcement solidifies growing speculation over the retailer’s interest in cryptocurrency, a move that mirrors the aggressive Bitcoin strategy of MicroStrategy (MSTR), the software company known for its massive Bitcoin holdings.

The gaming retailer revealed in a press release that its board of directors unanimously approved an update to the company’s investment policy, allowing Bitcoin to be added as a treasury reserve asset. This decision marks a strategic shift for the once-floundering video game retailer, which has struggled to reinvent itself in the digital age.

Wall Street Reacts to GameStop’s Bold Bet

The move has ignited both enthusiasm and skepticism among analysts and investors. On one side, GameStop’s decision aligns with the growing trend of corporate adoption of Bitcoin as a store of value, a strategy championed by MicroStrategy CEO Michael Saylor. On the other hand, market experts warn that GameStop’s track record of strategic pivots makes it difficult to predict long-term success.

Wedbush analyst Michael Pachter expressed concerns over the move, pointing out that GameStop has changed its strategy multiple times in recent years. “If GameStop were to allocate its $4.6 billion cash reserve into Bitcoin and trade similarly to MicroStrategy, it could lead to a decline in stock value,” Pachter noted, highlighting the risks of a cryptocurrency-driven approach.

Bitcoin’s Influence on GameStop’s Stock Price

Bitcoin’s role in corporate finance has grown significantly, with companies like Tesla and Square integrating digital assets into their balance sheets. GameStop’s decision could be an attempt to hedge against inflation or to align itself with a more future-focused financial strategy.

The timing of the announcement coincides with GameStop’s latest earnings report, which revealed a significant 28% drop in net sales for the fourth quarter, totaling $1.28 billion. The company’s adjusted EBITDA for the year also fell to $36.1 million from the previous $64.7 million. These financial struggles raise questions about whether Bitcoin investment can genuinely provide stability or if it is merely a high-risk bet in an increasingly volatile market.

Is GameStop the Next MicroStrategy?

MicroStrategy’s aggressive Bitcoin accumulation strategy has been a defining aspect of its corporate identity, leading to an 84% rise in its stock price over the past year. However, GameStop operates in a vastly different industry, where success depends on consumer demand for video games and digital sales rather than cryptocurrency holdings.

Michael Saylor’s strategy has largely worked due to a long-term belief in Bitcoin’s appreciation, but it remains unclear whether GameStop’s entry into the space is driven by the same conviction or an attempt to capitalize on short-term momentum.

A Gamble or a Genius Move?

GameStop’s stock remains one of the most unpredictable on Wall Street, a legacy of its 2021 retail investor-driven meme stock phenomenon. The company’s pivot to Bitcoin introduces yet another layer of volatility, with its future now closely tied to the movements of the cryptocurrency market.

Investors will be watching closely to see how GameStop executes its Bitcoin investment strategy and whether this move signals a fundamental shift in the company’s business model. While some see it as a revolutionary step into the financial future, others warn it could be a speculative gamble with little upside for long-term investors.

Game Stop

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