GameStop Buys $512 Million Bitcoin as Crypto Gaming Faces Shutdowns

GameStop, the video game retailer known for its meme stock status, made a significant move this week by purchasing 4,710 Bitcoin, valued at $512 million at the time of the transaction. This acquisition is part of the company's strategy to establish a corporate Bitcoin treasury, following a $1.5 billion convertible notes offering that concluded in early April. CEO Ryan Cohen views Bitcoin as a hedge against currency devaluation and systemic risk, although he did not disclose future purchase plans or strategies. GameStop's decision aligns with other public companies that have adopted Bitcoin as a reserve asset, such as Tesla and various crypto mining firms. Cohen acknowledged that GameStop was struggling when he joined in 2021, facing challenges from the shift to digital game downloads.

In other news, the crypto gaming space saw two Ethereum-based games on the Ronin network, Realms of Alurya and Wonder Wars, go offline due to funding difficulties. Hello Monster, the developer of Wonder Wars, cited an inability to secure necessary funding for continued operations and sustainable profitability. The team decided against launching a utility token, deeming it dishonest to rely on pure speculation. Realms of Alurya faced a similar fate after its publisher, Treasure, abruptly terminated its exclusivity contract and funding support amid a restructuring and pivot to AI. The developers of Realms of Alurya admitted that their over-reliance on the publisher was a mistake, leading to a derailed yearly roadmap. These shutdowns highlight broader struggles in the crypto gaming industry, with recent closures including Nyan Heroes, Ember Sword, The Mystery Society, and The Walking Dead: Empires, which is set to end in July. Common issues cited include funding struggles and a lack of players, with gaming tokens also facing challenges, except for Immutable's IMX, which remains in the top 100 cryptocurrencies by market cap.

Despite these setbacks, there are still developments in the crypto gaming world. Yuga Labs, the creator of the Bored Ape Yacht Club, sold the Moonbirds IP to Orange Cap Games, focusing on the Apes after selling the Meebits and CryptoPunks IP. Planet Mojo announced the shutdown of its NFT auto-battler game, Mojo Melee, effective July 1, as the studio pivots to AI. FIFA Rivals, an NFT mobile game, is set to roll out this summer, offering a first look at its gameplay. Solana meme coin bonk is teasing a game launch for Monday, developed by BR1 creator Bravo Ready Games. Avalanche-based hero shooter BloodLoop has resurfaced with plans to launch the 5v5 game this month. Gamified Telegram sleep app Sleepagotchi is launching on the LINE messaging app, while Immutable-based game Treeverse is planning its token launch for this month. Off the Grid added a Cyberlancer limb, allowing players to drive a knee-mounted spike into opponents' heads. Player-vs-player shooter game Shatterline will be converted into a single-player experience, and meme coin Floki is teasing a metaverse game rollout for June 30.