GameStop said Wednesday it has officially bought 4,710 bitcoins, worth more than half a billion dollars, as the video game retailer began its crypto purchasing plan in a similar move made famous by MicroStrategy.
The purchase, its first investment in bitcoin, was worth $512.6 million with bitcoin’s price of $108,837 Wednesday. The world’s largest cryptocurrency has been on a tear lately, hitting a record high near $112,000 last week, as easing trade tensions and the Moody’s downgrade of U.S. sovereign debt highlighted alternative stores of value like bitcoin.
Shares of GameStop rose nearly 3% in premarket trading following the news. The meme stock is up about 12% this year. As of February 1, the company had amassed a $4.76 billion cash pile, according to its annual report released in April.
CNBC first reported on GameStop’s intention to add cryptocurrencies on its balance sheet in February. The company confirmed its plan in late March, saying it has not set a ceiling on the amount of bitcoin it may purchase.
GameStop is following in the footsteps of software company MicroStrategy, now known as Strategy, which bought billions of dollars worth of bitcoin in recent years to become the largest corporate holder of the flagship cryptocurrency. That decision prompted a rapid, albeit volatile, rise for Strategy’s stock.
GameStop’s foray into cryptocurrencies marks the latest effort by CEO Ryan Cohen to revive the struggling brick-and-mortar business. Under Cohen’s leadership, GameStop has focused on cutting costs and streamlining operations to ensure the business is profitable.
