Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Investing

GameStop scoops up 4,710 Bitcoin worth over $500M, shares jump 3%

admin by admin
May 28, 2025
in Investing
0
GameStop scoops up 4,710 Bitcoin worth over $500M, shares jump 3%
0
SHARES
2
VIEWS
Share on FacebookShare on Twitter

GameStop Corp. (NYSE: GME) has seen a notable rise in its stock price during premarket trading on Wednesday after the gaming and electronics retailer announced its purchase of 4,710 Bitcoins.

GameStop shares rose more than 6.5% in pre-market trading before paring some of those gains.

At last check, the stock was up approximately 3% ahead of the market open.

GameStop

@gamestop

·Follow

GameStop has purchased 4,710 Bitcoin.

4:22 pm · 28 May 2025

0

Reply

Read more on Twitter

This move places GameStop among a growing list of mainstream companies diversifying their asset holdings by investing directly in Bitcoin (BTC).

GameStop’s strategic shift into crypto assets

GameStop’s decision to acquire BTC reflects not only a diversification of its investment portfolio but also a signal of confidence in the long-term viability of cryptocurrencies.

While the exact value of the purchase was not disclosed, analysts view this acquisition as a strategic step by a firm that has historically been quick to pivot during periods of market disruption.

At the current price of BTC at around $108,000, the holding is worth over $500 million.

Transitioning into crypto holdings could bolster GameStop’s asset mix as it continues efforts to modernise and reposition its business model for digital relevance.

Notably, the BTC purchase follows an earlier announcement by the company to update its investment policy to add Bitcoin as a treasury reserve asset.

GameStop’s financial position

From a financial standpoint, GameStop currently maintains a healthy balance sheet, with more cash than debt, giving it the flexibility to explore unconventional yet potentially rewarding investments.

According to InvestingPro data, the company holds a current ratio of 8.05, highlighting strong liquidity and operational efficiency.

Such a position enables GameStop to make aggressive financial decisions like investing in Bitcoin without undermining its core operations.

Moreover, the company’s recent stock performance reflects growing investor confidence, with the share price delivering a 24.81% return over the past week alone.

In addition, the Bitcoin purchase comes shortly after GameStop announced the pricing of $1.3 billion in convertible senior notes due in 2030.

These notes, carrying a 0.00% interest rate, are convertible into Class A common stock and are expected to provide funding for general corporate purposes, including crypto investments.

This financial manoeuvre illustrates GameStop’s intent to access capital while minimising debt servicing costs, positioning itself for future innovation.

Additionally, analysts at Wedbush Securities raised their stock target for GameStop to $13.50, maintaining an “Outperform” rating and citing the notes offering as a key reason.

But despite the market optimism, GameStop faces challenges on other fronts, including a lawsuit involving CEO Ryan Cohen over alleged improper profits from Bed Bath & Beyond trades.

The suit claims Cohen and RC Ventures made $47.2 million in profits from so-called “short-swing” trades, potentially requiring repayment.

At the same itme, GameStop Canada is undergoing a significant transformation by reverting to its former EB Games branding under new ownership by Stephan Tetrault.

This rebranding effort is designed to breathe new life into the Canadian market and create a stronger customer experience across the region.

The post GameStop scoops up 4,710 Bitcoin worth over $500M, shares jump 3% appeared first on Invezz

Previous Post

US stocks open in the green: S&P up 0.3%, Dow jumps 100 points

Next Post

UK grocery inflation hits 4.1% as wage hikes and tax changes push up prices

admin

admin

Next Post
UK grocery inflation hits 4.1% as wage hikes and tax changes push up prices

UK grocery inflation hits 4.1% as wage hikes and tax changes push up prices

Trending News

As the Oracle stock price surges, will Larry Ellison flip Elon Musk?

As the Oracle stock price surges, will Larry Ellison flip Elon Musk?

July 25, 2025
Undervalued but poised for growth: Simply Good Foods could be a good buy

Undervalued but poised for growth: Simply Good Foods could be a good buy

November 14, 2024
Top gainers & losers today: Nifty, Sensex jump 2%, metals in the spotlight

Top gainers & losers today: Nifty, Sensex jump 2%, metals in the spotlight

April 11, 2025
Subscribe to Insightful Word


    Recent News

    Dow futures soar 250 points today: 5 things to know before Wall Street opens

    Dow futures soar 250 points today: 5 things to know before Wall Street opens

    August 7, 2025
    Affirm stock price is rising: is it a buy before earnings?

    Affirm stock price is rising: is it a buy before earnings?

    August 7, 2025
    Intel stock plunges sharply after Trump calls on CEO to resign: here’s why rebound may take time

    Intel stock plunges sharply after Trump calls on CEO to resign: here’s why rebound may take time

    August 7, 2025
    Goldman Sachs boosts Nvidia price target to $200 ahead of Q2 earnings

    Goldman Sachs boosts Nvidia price target to $200 ahead of Q2 earnings

    August 7, 2025

    Recent News

    Dow futures soar 250 points today: 5 things to know before Wall Street opens

    Dow futures soar 250 points today: 5 things to know before Wall Street opens

    August 7, 2025
    Affirm stock price is rising: is it a buy before earnings?

    Affirm stock price is rising: is it a buy before earnings?

    August 7, 2025

    Latest News

    • Dow futures soar 250 points today: 5 things to know before Wall Street opens
    • Affirm stock price is rising: is it a buy before earnings?
    • Intel stock plunges sharply after Trump calls on CEO to resign: here’s why rebound may take time

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.