GameStop Purchases $500 Million in Bitcoin (BTC)
Texas-based video game retailer GameStop has joined the growing list of companies adopting Bitcoin (BTC) as a strategic reserve asset. In an official announcement, the company disclosed that it had recently purchaseed 4,710 BTC, worth over $513 million.
The purchase, which accounts for approximately one-third of the funds raised through a $1.5 billion convertible note offering in early April, marks GameStop's first significant foray into digital currency. The exact timing of the purchase within the final week of May was not disclosed beyond the announcement date.
While the average purchase price was not specified, calculations based on the total cost show an approximate price of $109,000 per BTC. The move positions GameStop as the 13th largest publicly traded Bitcoin holder, signaling a significant strategic shift in the company's treasury management.
This latest development mirrors similar decisions by corporations such as MicroStrategy, Metaplanet, and others. MicroStrategy, for instance, recently announced a purchase of an additional 4,020 BTC at an average price of $106,237 per BTC, bringing its total Bitcoin holdings to over 580,000, valued at over $60 billion.
GameStop had earlier signaled its intention to invest in Bitcoin, with plans to add BTC to its treasury reserves revealed at the end of March. The decision is part of a broader move to diversify the company's reserves, following the $1.5 billion zero-interest convertible note offering.
GameStop's purchase of 4,710 Bitcoin, worth over $513 million, marks a significant entry into digital currency and technology investing for the company, diversifying its finance strategies. This strategic shift in treasury management, inspired by similar decisions from corporations like MicroStrategy and Metaplanet, positions GameStop as one of the notable block chain investors in the finance sector.
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