Gamestop’s shares slid 23% on the news, but the company went on to raise $1.5 billion in a private offering to investors in April, money specifically earmarked for Bitcoin purchases.
“Bitcoin is exciting for a loyal investor base, but it distracts from core fundamentals: if crypto prices drop, GameStop may easily end up in a double-bind,” says Shtyrkin.
Over the years, GameStop has struggled to keep up with a shift in demand from physical video games to digital ones. Between 2023 and 2024, GameStop’s sales decreased by 28%, falling from $5.3 billion to $3.8 billion. As a result, the company was forced to shutter a quarter of its locations within the last year and plans to close a significant number of stores in 2025.
GameStop’s shift to Bitcoin is not the first surprising twist in the company’s history. The video game retailer became known as a “meme stock” in 2021 after shares of the company unexpectedly skyrocketed after a band of Redditors made it a viral trend to invest in it.
