{"id":130187,"date":"2025-05-28T21:16:24","date_gmt":"2025-05-28T21:16:24","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=130187"},"modified":"2025-05-28T21:16:24","modified_gmt":"2025-05-28T21:16:24","slug":"gamestop-shares-sink-11-after-btc-purchase","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=130187","title":{"rendered":"GameStop shares sink 11% after BTC purchase"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsShares of video game and collectibles retailer GameStop dropped nearly 11% on May 28 after the company announced its first Bitcoin purchase, triggering a classic sell-the-news reaction.<br \/>\nThe stock closed at $31.21 on the New York Stock Exchange, according to Google Finance.<br \/>\nThe company announced the purchase of 4,710 Bitcoin (BTC) valued at roughly $513 million on May 28. GameStop confirmed plans to create a BTC treasury strategy on March 26, following months of investor speculation and rumors that it would begin accumulating the cryptocurrency.<br \/>\nTrump Media and Technology Group (TMTG), the parent company of President Donald Trump\u2019s Truth Social platform, also saw its shares plunge after announcing a $2.5 billion capital raise to purchase Bitcoin. Since the May 27 announcement, TMTG stock has dropped over 24%.<br \/>\nGameStop\u2019s stock has experienced a pullback following the company\u2019s first Bitcoin purchase. Source: TradingViewGameStop\u2019s move to adopt Bitcoin as a treasury reserve asset reflects a growing trend among companies turning to Bitcoin to safeguard cash reserves or reposition themselves as Bitcoin acquisition vehicles.<br \/>\nRelated: Bitcoin accepted at fast food chain Steak \u2019n Shake from May 16<br \/>\nBitcoin as a hedge against fiat currency inflation<br \/>\nSpeaking at the Bitcoin 2025 conference in Las Vegas, Nevada, GameStop CEO Ryan Cohen said that \u201cBitcoin and gold can be hedges against global currency devaluation and systemic risk.\u201d According to Cohen:<br \/>\n&#8220;Bitcoin has certain unique advantages compared to gold. The portability aspect, it&#8217;s instantly transferable across the globe, whereas gold is bulky and very expensive to ship, the authenticity is instantly verified via the blockchain. You can easily secure Bitcoin in a wallet, whereas gold requires insurance, and it is very expensive.&#8221;<br \/>\nThe CEO also cited the absolute scarcity of Bitcoin and the potential for gold&#8217;s inflation rate to increase due to technological advancements as a factor in favor of choosing Bitcoin over gold for long-term value storage.<br \/>\nGameStop CEO Ryan Cohen discusses the rationale for the company\u2019s Bitcoin acquisition. Source: Bitcoin MagazineBitcoin also has a greater potential upside since the digital asset is still in its infancy and continues to be monetized. according to Cohen.<br \/>\n\u201cGold is a more mature market. It is roughly around $20 trillion in market capitalization, whereas Bitcoin today is about $2 trillion,\u201d the GameStop CEO said.<br \/>\nMagazine: Bitcoin miners steamrolled after electricity thefts, exchange \u2018closure\u2019 scam: Asia Express<a href=\"https:\/\/cointelegraph.com\/news\/gamestop-shares-sink-btc-purchase?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsShares of video game and collectibles retailer GameStop dropped nearly 11% on May 28 after the company announced its first Bitcoin purchase, triggering a classic sell-the-news reaction. The&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/130187"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=130187"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/130187\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=130187"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=130187"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=130187"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}