GameStop buys 4,710 BTC (500m dollars)

[Oshosondy]

I was about to post this but I search first and I saw that you have posted it already. This is the first time that the video game retailer will buy bitcoin but it has announced it before.

According to what I read on CNBC, Shares of GameStop rose nearly 3% in premarket trading following the news.

I think some businesses want to be more well know and they go for bitcoin. It is a business strategy.

Shares of GameStop dipped 9% in morning trading following the news.

I also saw in the article you referenced that their shares dropped after the announcement of the purchase of Bitcoin.

This was exactly what happened to DDC Enterprise an Asian food company that bought 21 BTC ($2.28M). Their shares dropped 14.5% in a day after the announcement.(When a Food Company Buys Bitcoin )

Anyway, another good news about more institutional investment.

That news was edited and the opposite was posted. I copied this from the site directly:

Shares of GameStop rose nearly 3% in premarket trading following the news. The meme stock is up about 12% this year. As of February 1, the company had amassed a $4.76 billion cash pile, according to its annual report released in April.

I am not into stock to know what the actual price is but I am sure that news was edited.

I saw the market now and it is very red which is not good at all.

This is a daily chart of the share:

[BitHodlers]

We know bro. Just because a firm has deep pockets doesn’t mean it can throw money anywhere without consequences. Allocating capital into Bitcoin, especially at a $108K entry during early global adoption, isn’t just bold—it’s high-stakes, if it's less bold then why other major firms like Apple didn't put something to it even they are the top of the line ('cause it's not about the money). We’re not here to doubt Bitcoin, most of us are pro-BTC, and that’s exactly why we’re here and discussing about it. But please remember, when a major firm steps in, it carries the weight of future outcomes and the trust of countless investors. It’s not just about gains, it’s about accountability.

You are comparing different things. Apple is not an innovative company and has not been for decades. Apple is a cash cow company milking brand cultists. As you can see, all innovative adoption is coming from smaller entities. There is very little risk about adopting Bitcoin now, and as I said, it is not high-stakes. It is high-stakes to invest in the best performing asset of the last 2 decades, which is now also one of the largest asset classes in the world? Yeah right.

And while we support Bitcoin’s vision, don't glaze too much. Volatility is still a real threat. One coordinated move, one wave of manipulation, and the entire trend can shift in just a blink of an eye.

Maybe check your data, Bitcoin has been less volatile than most stock. The days of Bitcoin being a very volatile asset are long gone.

[bitbollo]

I am always asking to myself: how they are strong these coins? Because they own the tokens and not just and IOU piece of paper...anyway if they had enough cash for making a big purchase like this, once big companies or other entities will do the same.. what will be the effect on exchanges?! actually there Is already a record (low) of Bitcoin in exchanges (around 1.3 milione)

[takuma sato]

Looks like Ryan Cohen was waiting on the Bitcoin Conference in Las Vegas in order to announce the big purchase. Not bad at all for the first time, a cool amount to own. Two more like this and they will be at the top of the Bitcoin treasury companies. Ryan said that they are not following any strategy but their own. In any case, this is interesting and will put Bitcoin treasury strategy on the map, because Gamestop is a way more known brand than any of the existing ones. They could come up with creative ways to benefit from this good traction such as accepting BTC payments on all Gamestop shops. They would have a lot of bitcoiners supporting Gamestop by making purchases. You can't lose really. And now with the US administration involved, they could get in contact with VP Vance and tell them to remove taxes on BTC purchases, then it's on.

[SUPERSAIAN]

Recently all companies are imitating Micheal Saylor, the micro strategy. I think most of them had a fear of missing out, so they started collecting bitcoins, it is definitely becoming difficult to follow. I believe that we will see good increases in bitcoin prices together with the supply shortage.

Bitcoin does not need companies or governments, on the contrary, companies and governments need bitcoins. The best thing for small and individual investors would be to save and buy bitcoins with their savings.

[BitHodlers]

I am always asking to myself: how they are strong these coins? Because they own the tokens and not just and IOU piece of paper...anyway if they had enough cash for making a big purchase like this, once big companies or other entities will do the same.. what will be the effect on exchanges?! actually there Is already a record (low) of Bitcoin in exchanges (around 1.3 milione)

They don't own any IOU, or tokens. They own Bitcoin.

Recently all companies are imitating Micheal Saylor, the micro strategy. I think most of them had a fear of missing out, so they started collecting bitcoins, it is definitely becoming difficult to follow. I believe that we will see good increases in bitcoin prices together with the supply shortage.

Why would it be difficult to follow? There is plenty of capital to go around, a lot of it is not used at all. Bitcoin is pretty cheap compared to what price it could have.

[takuma sato]

Recently all companies are imitating Micheal Saylor, the micro strategy. I think most of them had a fear of missing out, so they started collecting bitcoins, it is definitely becoming difficult to follow. I believe that we will see good increases in bitcoin prices together with the supply shortage.

Bitcoin does not need companies or governments, on the contrary, companies and governments need bitcoins. The best thing for small and individual investors would be to save and buy bitcoins with their savings.

While bitcoin does not need companies, if companies adopt bitcoin as a treasury asset, it legitimates bitcoin at the corporate level, and then governments are forced to legislate about it, and so then political parties will have to decide if this is good or not to go. Anyone reasonable would consider that in a free society, people are free to hold fiat, gold, BTC, or any other assets, so most likely governments at least in the west will become pro-BTC eventually, if not then the US is going to get all the action, but I believe eventually everyone pivots and BTC is just accepted as another asset on your balance sheet and this is good for BTC even if BTC does not need it.

[X-ray]

I am always asking to myself: how they are strong these coins? Because they own the tokens and not just and IOU piece of paper...anyway if they had enough cash for making a big purchase like this, once big companies or other entities will do the same.. what will be the effect on exchanges?! actually there Is already a record (low) of Bitcoin in exchanges (around 1.3 milione)

I'm pretty sure they are using 3rd party custody service because legally speaking, it's needed and so far the one that I know is bitgo, there might be others as well.

It's to mitigate the risk of security as well I think. Even exchanges uses these services.

[GreatArkansas]

It's really starting to become difficult to keep track of all companies raising money to buy bitcoin...

That's because of what I said in the other thread.

It's a good news but it's not going to help them. GameStop is a dying business.

You don't get the point. MSTR was a dying business, SMLR was a dying business, the early adopters of the strategy are the businesses that are dying, because it saves them from death, not Microsoft or Apple.

Bitcoin adoption by companies like MSTR is less about desperation and more about a caculated gamble, which oen that can bring immense rewards or steep losses, depending on the market conditions.

[Lucius]

Every time I see news like this, I think it's good that it only took 15 years for someone to invest in BTC, but honestly, I would prefer it if it took them at least another 15 years to figure it out. Why am I saying that? Well, maybe because all these investors are just hoarding BTC and will probably never use it as they should, making BTC even more expensive and also more vulnerable in the sense that they can be hacked at any moment.

I hope that as many ordinary people as possible will buy BTC, because it would mean more than if companies like this buy it.

[Polkeins]

Every time I see news like this, I think it's good that it only took 15 years for someone to invest in BTC, but honestly, I would prefer it if it took them at least another 15 years to figure it out. Why am I saying that? Well, maybe because all these investors are just hoarding BTC and will probably never use it as they should, making BTC even more expensive and also more vulnerable in the sense that they can be hacked at any moment.

I hope that as many ordinary people as possible will buy BTC, because it would mean more than if companies like this buy it.

All these companies including metaplanet, gamestop or microstrategy are not going to use bitcoin for payments or transfers, but use it as a financial leverage.
Now microstrategy has tens of billions of dollars worth of bitcoins and its core business of selling software brings in less than a billion dollars, a real gold mine.
It is the same with metaplanet, which no one knew before they bought BTC, even in Japan, and now they are already placing their bonds secured by bitcoin, to buy bitcoin, and while the price of bitcoin is rising it is like a perpetual motion machine that does not stop, but always moves forward.

Game stop was a little less lucky, because they bought bitcoin almost near their ath and therefore their shares did not grow much, but if bitcoin grows to 120-140k, everything will change and gamestop shares will also go up.

[NotATether]

This company is practically dead; they have no business buying bitcoins. They might as well file for Chapter 7 bankruptcy and liquidate.

[BitHodlers]

This company is practically dead; they have no business buying bitcoins. They might as well file for Chapter 7 bankruptcy and liquidate.

What are you talking about? Just because it has not yet found a new business direction and has an outdated business model, that does not make it practically dead. This is what you consider practically dead?

FULL YEAR OVERVIEW
Net sales were $3.823 billion for fiscal year 2024, compared to $5.273 billion for fiscal year 2023.
SG&A expenses were $1.130 billion for fiscal year 2024, compared to $1.324 billion for fiscal year 2023.
Net income was $131.3 million for fiscal year 2024, compared to a net income of $6.7 million for fiscal year 2023.
Adjusted EBITDA of $36.1 million for fiscal year 2024, compared to adjusted EBITDA of $64.7 million for fiscal year 2023.

Cash, cash equivalents and marketable securities were $4.775 billion at the close of the quarter.

I wish I had a couple of these dead companies with a few billion to spare.  

[NotATether]

This company is practically dead; they have no business buying bitcoins. They might as well file for Chapter 7 bankruptcy and liquidate.

What are you talking about? Just because it has not yet found a new business direction and has an outdated business model, that does not make it practically dead. This is what you consider practically dead?

FULL YEAR OVERVIEW
Net sales were $3.823 billion for fiscal year 2024, compared to $5.273 billion for fiscal year 2023.
SG&A expenses were $1.130 billion for fiscal year 2024, compared to $1.324 billion for fiscal year 2023.
Net income was $131.3 million for fiscal year 2024, compared to a net income of $6.7 million for fiscal year 2023.
Adjusted EBITDA of $36.1 million for fiscal year 2024, compared to adjusted EBITDA of $64.7 million for fiscal year 2023.

Cash, cash equivalents and marketable securities were $4.775 billion at the close of the quarter.

I wish I had a couple of these dead companies with a few billion to spare.  

I'm not gonna attempt to interpret any of those numbers in that report since I'm not a stock investor, but I think their situation is summed up by, as you have stated, "it has not yet found a new business direction".

Perhaps calling it practically dead is an exaggeration, but I don't see why a company like Gamestop in hard times doesn't use the money they are investing in Bitcoin to do market research and develop an successful product.

Buying bitcoins is something that you expect Microstrategy and Blackrock to do, not a video game company who is bleeding market share to competitors.

Nothing wrong with regular, non-finance businesses buying Bitcoins if they want to, by the way. It just signals to me that they are unserious about turning their long term revenue around - or they've already conquered the market and are focusing on reaping profits now.

[BitHodlers]

This company is practically dead; they have no business buying bitcoins. They might as well file for Chapter 7 bankruptcy and liquidate.

What are you talking about? Just because it has not yet found a new business direction and has an outdated business model, that does not make it practically dead. This is what you consider practically dead?

FULL YEAR OVERVIEW
Net sales were $3.823 billion for fiscal year 2024, compared to $5.273 billion for fiscal year 2023.
SG&A expenses were $1.130 billion for fiscal year 2024, compared to $1.324 billion for fiscal year 2023.
Net income was $131.3 million for fiscal year 2024, compared to a net income of $6.7 million for fiscal year 2023.
Adjusted EBITDA of $36.1 million for fiscal year 2024, compared to adjusted EBITDA of $64.7 million for fiscal year 2023.

Cash, cash equivalents and marketable securities were $4.775 billion at the close of the quarter.

I wish I had a couple of these dead companies with a few billion to spare.  

I'm not gonna attempt to interpret any of those numbers in that report since I'm not a stock investor, but I think their situation is summed up by, as you have stated, "it has not yet found a new business direction".

Perhaps calling it practically dead is an exaggeration, but I don't see why a company like Gamestop in hard times doesn't use the money they are investing in Bitcoin to do market research and develop an successful product.

Buying bitcoins is something that you expect Microstrategy and Blackrock to do, not a video game company who is bleeding market share to competitors.

Nothing wrong with regular, non-finance businesses buying Bitcoins if they want to, by the way. It just signals to me that they are unserious about turning their long term revenue around - or they've already conquered the market and are focusing on reaping profits now.

The numbers are easy to interpret. Gamestop is one of the few companies that has practically no debt, and has billions to spare at these company sizes (don't compare it to Apple of course). Currently they are still profitable every year. They would have to start operating in negative numbers and it would take many years before they burn out their cash balance. So yes, they have money to do something like this and have time before their situation becomes a problem. I am sure they are actively working on changing their business model, but that is a hard question to answer. What would you pivot to if you were Gamestop?

While they are trying to figure it out, why not use 10% of the cash to buy Bitcoin to improve their chances?   It has no negative impact on them, as it is a low percentage, no debt was used and no shares were diluted either.

[NotATether]

The numbers are easy to interpret. Gamestop is one of the few companies that has practically no debt, and has billions to spare at these company sizes (don't compare it to Apple of course). Currently they are still profitable every year. They would have to start operating in negative numbers and it would take many years before they burn out their cash balance. So yes, they have money to do something like this and have time before their situation becomes a problem. I am sure they are actively working on changing their business model, but that is a hard question to answer. What would you pivot to if you were Gamestop?

While they are trying to figure it out, why not use 10% of the cash to buy Bitcoin to improve their chances?   It has no negative impact on them, as it is a low percentage, no debt was used and no shares were diluted either.

At the risk of going off-topic, they should really look into B2B game server and DLC hosting.

I think it would help game studios a lot in avoiding worrying about where to host their multiplayer boxes, their "update the game" boxes and so on.

There's dozens of these servers involved for a given AAA title for load balancing purposes and the like, and also to mitigate DDoS.

GameStop has a lot of cash so they can afford to lease an appropriate data center for cheap, configure all the servers and then resell them.

Then with all those servers you can make a giant DLC store for all PC games on their websites.

So instead of video games they sell DLCs. They would have to sacrifice all their stores but I think it will be worth it.

Xbox, Playstation, Android and iOS all have their own DLC stores ran by one corpo.

They can even sell keys for cheap like G2A if they want.

But, it's up to them to decide what they want to do. Now that I mentioned it, some guy reading this post is probably going to make this startup.

[takuma sato]

Im checking the financials and this company's cash holdings have increased a lot in the last 3 quarters way more than many years before, the chart im looking at goes back to 2020. They also did some sort of ATM in the last 3 quarters, so I assume they sold shares at the market and then held this in cash, but this info may not include their BTC purchases yet which should be reported for this quarter in the next one. OPEX is tending lower nicely. Net income was great at $131.3 million. Software revenue is tending lower, since people are buying games on Steam. Revenue from collectibles has been higher than hardware and software (videoconsoles and videogames which is what I guess is sold there).  So it looks like this is the type of company to benefit from BTC. Large following, heavily shorted and ability to raise debt at reasonable levels. Then when they have a big back of BTC they can find ways to monetize it and profit in more ways.

[r_victory]

It will become increasingly common for large corporations to buy up large amounts of bitcoin. They can use leverage, either financial or equity, to raise additional capital and invest in new assets (in this case, bitcoin) that will yield a return higher than the cost of the debt they have incurred. It is risky, but it can be positive in the long run. It can help improve the perception of value and impact price growth.

[coolcoinz]

This company is practically dead; they have no business buying bitcoins. They might as well file for Chapter 7 bankruptcy and liquidate.

Their only way to keep going is to change from selling games into venture capital. That's what Saylor is doing. He said it himself that if he kept doing the thing he was doing he'd go out of business because large software companies can offer cheaper product.

Gamestop is sitting on a lot of capital that can go into something, do some good. They could start drilling wells in Africa, get into real estate, or do what they're doing  -buy bitcoin.

IMO they are still far from being bankrupt.

[criptoevangelista]

Who would’ve thought? From bankrupt to a Bitcoin buyer, GameStop is a rather unusual case of a company that managed to recover thanks to small investors on an internet forum. Crazy, it’s practically a story you'd see in a Hollywood movie. Now we just have to see how this and other companies buying Bitcoin at the top will perform when the bear market arrives.