The recruitment of the Cryptocurrency Ministry has raised stock prices for many companies in recent months, but after buying the first bitcoin, video game retailer GameStop has seen very different results.
GameStop (GME) prices have fallen more than 10% on the day, and are now diving into the current price of $31.45, following the words that they have completed their first purchase of Bitcoin. Before returning to its current level, the price went down as low as $30.73.
Even with daily DIP, GME has risen by almost 10% over the last week and has risen by 14% over the past month.
GameStop acquired 4,710 Bitcoins, worth $512 million when it was disclosed Wednesday morning. The move was expected several weeks after the company announced it had raised $1.5 billion to promote its planned purchase of Bitcoin after adding major cryptocurrencies as financial assets in late March.
The company’s moves had been telegraphed in advance when GameStop CEO Ryan Cohen shared a photo of himself with strategy co-founder and executive secretary Michael Saylor in February. The strategy is a leading corporate holder of Bitcoin, worth more than $62 billion at the time of this writing, and Saylor is a voiced Bitcoin supporter who has worked to persuade other companies to make similar Bitcoin Treasury moves.
GameStop’s Bitcoin Play has so far collected investors’ results, and stock prices rose in late March when the move was first announced, but fell after GameStop said it would raise up to $1.5 billion instead of buying assets rather than leveraging its cash reserves.
Dozens of public companies have announced their own Cryptocurrency Treasury moves in recent months. Bitcoin is usually an asset of choice, but companies like Defi Development Corp. and Upexi, which accepted Solana, have seen the profits they acquired on Tuesday, while NASDAQ-registered Sharplink Gaming has skyrocketed with plans to launch an Etherum Reserve.
GameStop is a much larger company than most startups that have recently embraced crypto reserves, but it has a considerable business and a key stock market history, riding on the 2021 “meme” stock and headline grabbing price spikes led by influencer Keith Gill Aka Rowling Kitty.