Overview

• GameStop announced on May 28 that it purchased 4,710 Bitcoin worth about $513 million as part of its newly unveiled treasury reserve strategy
• The acquisition was funded by proceeds from a $1.3 billion convertible bond offering completed in early April
• Shares initially rose roughly 7 percent in premarket trading before falling as much as 10 percent in morning sessions
• CEO Ryan Cohen is steering the pivot toward digital assets to broaden the company’s cash holdings and follow a model pioneered by Michael Saylor’s MicroStrategy
• GameStop had earlier launched and then shuttered a cryptocurrency wallet and NFT platform due to regulatory uncertainty before shifting to its current Bitcoin reserve