Meme store GameStop buys first bitcoin batch, scooping up $500 million

GameStop stated Wednesday it has formally purchased 4,710 bitcoins, price greater than part 1000000000 bucks, because the online game store started its crypto buying plan in a equivalent transfer made well-known through MicroStrategy.

The acquire, its first funding in bitcoin, was once price $512.6 million with bitcoin’s worth of $108,837 Wednesday. The international’s biggest cryptocurrency has been on a tear in recent times, hitting a report prime close to $112,000 ultimate week, as easing industry tensions and the Moody’s downgrade of U.S. sovereign debt highlighted choice shops of price like bitcoin.

Shares of GameStop dipped 3% in morning buying and selling following the scoop. The meme inventory is up about 8% this yr. As of February 1, the corporate had collected a $4.76 billion money pile, in keeping with its annual record launched in April.

CNBC first reported on GameStop’s aim so as to add cryptocurrencies on its steadiness sheet in February. The corporate showed its plan in overdue March, pronouncing it has now not set a ceiling at the quantity of bitcoin it will acquire.

GameStop is following within the footsteps of tool corporate MicroStrategy, now referred to as Strategy, which purchased billions of greenbacks price of bitcoin in recent times to develop into the biggest company holder of the flagship cryptocurrency. That choice precipitated a fast, albeit risky, upward push for Strategy’s inventory.

GameStop’s foray into cryptocurrencies marks the most recent effort through CEO Ryan Cohen to restore the suffering brick-and-mortar trade. Under Cohen’s management, GameStop has concerned about chopping prices and streamlining operations to verify the trade is winning.