GameStop's Stock Jumps 12% After Bitcoin Purchase Plan

GameStop's shares surged by nearly 12% on March 26 following the company's announcement of plans to purchase Bitcoin (BTC). The company intends to finance this acquisition through debt financing, as revealed in a $1.3 billion convertible notes offering announced after the market closed on March 26. These convertible senior notes, which can later be converted into equity, are designated for general corporate purposes, including the acquisition of Bitcoin, as stated in the company's official announcement.

GameStop had previously disclosed on March 25 its intention to use a portion of its corporate cash or future debt to purchase digital assets, including Bitcoin and US-dollar-pegged stablecoins. As of February 1, GameStop's cash reserves stood at $4.77 billion, a significant increase from $921.7 million a year earlier. The company's net income for Q4 2024 was reported at $131.3 million, compared to $63.1 million in the prior year's Q4. Despite a year-over-year decline in net sales by $511 million, GameStop has been aggressively cutting expenses, including the closure of 590 stores across the United States in 2024.

GameStop's strategic shift towards Bitcoin aligns with a growing trend among corporations embracing cryptocurrencies as a hedge against inflation and a potential long-term store of value. This move follows the lead of other companies, such as Strategy, which first added Bitcoin to its treasury in August 2020 and saw its stock gain 3200% by December 2024. Similarly, Metaplanet, a Japanese company planning to buy 21,000 BTC by 2026, experienced a 4800% rise in its stock price since announcing its crypto strategy. Semler Scientific also saw a spike in its share price after announcing plans to purchase Bitcoin.

GameStop's decision to invest in Bitcoin is part of a broader resurgence of interest in the cryptocurrency, which has seen its price climb steadily in 2025. The company's stock jumped 12% in after-hours trading following the announcement, reflecting the market's positive reaction to the news. However, the move has also sparked criticism from those who argue that GameStop should focus on strengthening its core business rather than venturing into volatile cryptocurrencies. The company has not yet detailed how it will custody its Bitcoin or whether it plans to expand its crypto strategy further, though CFO Diana Peterson hinted at additional blockchain-related initiatives in the pipeline.