GameStop Shares Fall After Buying $513 Million In Bitcoin
The post GameStop Shares Fall After Buying $513 Million In Bitcoin appeared on BitcoinEthereumNews.com. Topline Shares of GameStop dropped in early trading Wednesday, after the video game retailer and meme stock announced a $513 million purchase of bitcoin, which has surged to new record highs in recent weeks as regulatory concerns ease. The video game retailer previously said it would add bitcoin as a “treasury reserve asset.” Getty Images Key Facts GameStop’s stock fell by more than 4% after trading opened Wednesday to below $34, despite a surge above 3% in premarket trading, following an earlier announcement the retailer purchased 4,710 bitcoins valued at just over $513 million as of bitcoin’s price of roughly $109,000 Wednesday morning. The company disclosed the purchase in a Securities and Exchange Commission filing, though it’s unclear when GameStop acquired its first batch of bitcoin. GameStop said in March the retailer’s board unanimously approved an update to its investment policy to add bitcoin as a “treasury reserve asset.” The price of bitcoin declined slightly (0.5%) Wednesday morning and has floated around $110,000 in recent days, though the cryptocurrency rallied to a new all-time high above $110,600 on May 21 before setting its latest record near $112,000 the next day. Why Did Gamestop Buy Bitcoin? Speculation about GameStop setting up a bitcoin reserve began in February after chief executive Ryan Cohen met with Michael Saylor, chairman of MicroStrategy, now rebranded as Strategy, a business software firm known for being the largest corporate holder of bitcoin. GameStop started exploring investments in new assets in March to bolster the retailer’s business, including cryptocurrencies like bitcoin, sources familiar with the matter told CNBC. Shares of GameStop spiked by about 20% after the report. Tangent Truth Social’s parent company, Trump Media and Technology Group, announced in an SEC filing Tuesday the company is raising $2.5 billion to build a corporate bitcoin reserve. The firm…
The post GameStop Shares Fall After Buying $513 Million In Bitcoin appeared on BitcoinEthereumNews.com.
Topline Shares of GameStop dropped in early trading Wednesday, after the video game retailer and meme stock announced a $513 million purchase of bitcoin, which has surged to new record highs in recent weeks as regulatory concerns ease. The video game retailer previously said it would add bitcoin as a “treasury reserve asset.” Getty Images Key Facts GameStop’s stock fell by more than 4% after trading opened Wednesday to below $34, despite a surge above 3% in premarket trading, following an earlier announcement the retailer purchased 4,710 bitcoins valued at just over $513 million as of bitcoin’s price of roughly $109,000 Wednesday morning. The company disclosed the purchase in a Securities and Exchange Commission filing, though it’s unclear when GameStop acquired its first batch of bitcoin. GameStop said in March the retailer’s board unanimously approved an update to its investment policy to add bitcoin as a “treasury reserve asset.” The price of bitcoin declined slightly (0.5%) Wednesday morning and has floated around $110,000 in recent days, though the cryptocurrency rallied to a new all-time high above $110,600 on May 21 before setting its latest record near $112,000 the next day. Why Did Gamestop Buy Bitcoin? Speculation about GameStop setting up a bitcoin reserve began in February after chief executive Ryan Cohen met with Michael Saylor, chairman of MicroStrategy, now rebranded as Strategy, a business software firm known for being the largest corporate holder of bitcoin. GameStop started exploring investments in new assets in March to bolster the retailer’s business, including cryptocurrencies like bitcoin, sources familiar with the matter told CNBC. Shares of GameStop spiked by about 20% after the report. Tangent Truth Social’s parent company, Trump Media and Technology Group, announced in an SEC filing Tuesday the company is raising $2.5 billion to build a corporate bitcoin reserve. The firm…
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