Shares 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 stock closed at $31.21 on the New York Stock Exchange, according to Google Finance.
The 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.
Trump Media and Technology Group (TMTG), the parent company of President Donald Trump’s 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%.
GameStop’s 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.
Bitcoin as a hedge against fiat currency inflation
Speaking at the Bitcoin 2025 conference in Las Vegas, Nevada, GameStop CEO Ryan Cohen said that “Bitcoin and gold can be hedges against global currency devaluation and systemic risk.” According to Cohen:
"Bitcoin has certain unique advantages compared to gold. The portability aspect, it'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."
The CEO also cited the absolute scarcity of Bitcoin and the potential for gold's inflation rate to increase due to technological advancements as a factor in favor of choosing Bitcoin over gold for long-term value storage.
Bitcoin also has a greater potential upside since the digital asset is still in its infancy and continues to be monetized. according to Cohen.
“Gold is a more mature market. It is roughly around $20 trillion in market capitalization, whereas Bitcoin today is about $2 trillion,” the GameStop CEO said.
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