GameStop (GME) stock fell sharply by over 10% following the company’s surprising announcement in late May 2025 of a massive Bitcoin acquisition valued at more than $500 million. This bold move into cryptocurrency has unsettled investors, many of whom are critical of the retailer’s pivot into digital assets, arguing it fails to address the company’s ongoing core business challenges.
Since the rise of digital gaming and changing consumer habits, GameStop’s traditional physical game sales have steadily declined. The company briefly found renewed attention in January 2021 during a dramatic market rally when a short squeeze drove its stock price to unprecedented highs. However, despite the surge, GameStop’s fundamentals have remained weak, and the company continues to struggle in a rapidly evolving retail landscape.
In an attempt to diversify its holdings, GameStop announced on May 28, 2025, that it purchased 4,710 Bitcoins. This announcement came just days after Bitcoin hit an all-time high of $111,000. If the purchase occurred within the final week of May, GameStop’s investment likely exceeded $500 million. Following the news, GameStop shares dropped sharply, bottoming out at $30.88—a 13.7% decline—and closing even lower at $29.56 the next day.
Critics argue that while the Bitcoin investment might seem like a bold strategic shift, it does not address the company’s deeper issues, such as declining physical sales and the challenges posed by digital competitors. The stock’s steep fall highlights investor skepticism toward GameStop’s cryptocurrency gamble amid uncertain times for the retailer.
As GameStop navigates this new chapter, market watchers will be closely observing whether the cryptocurrency move can generate value or further complicate the company’s efforts to regain market relevance.