GameStop To Invest Corporate Cash In Bitcoin, Following In Footsteps of MicroStrategy
- Reference: 0176824565
- News link: https://slashdot.org/story/25/03/26/0059223/gamestop-to-invest-corporate-cash-in-bitcoin-following-in-footsteps-of-microstrategy
- Source link:
> The video game retailer said a portion of its cash or future debt and equity issuances may be invested in bitcoin and U.S. dollar-denominated stablecoins. As of Feb. 1, GameStop held nearly $4.8 billion in cash. The firm also said it has not set a ceiling on the amount of bitcoin it may purchase. The company said the move could expose it to volatility associated with cryptocurrency prices.
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> "Bitcoin, for example, is a highly volatile asset and has experienced significant price fluctuations over time. Our Bitcoin strategy has not been tested and may prove unsuccessful," GameStop said in a U.S. Securities and Exchange Commission filing.
[1] https://www.cnbc.com/2025/03/25/gamestop-says-it-will-add-bitcoin-as-a-treasury-reserve-asset.html
[2] https://slashdot.org/story/24/12/31/204219/microstrategys-big-bet-on-bitcoin-went-stratospheric
"investing" in stablecoins? (Score:1)
I can see HOLDING stable-coins but otherwise why do that rather than hold the cash as actual cash or better yet short-term bonds/notes? It doesn't make sense.
Bitcoin seems risky and pointless for other reasons, but at least you are making the conscious decision to trade one thing for something different, not "pointlessly trade" what amounts to 1 thing for what amounts to "the same thing."
Re: (Score:1)
> HOLDING
HOLDING? Really? Bro doesn't even know what HODLING is!
Re: (Score:2)
"Even the head of the US...." Ah yes - how is trump coin doing? Was it a good investment so far? and shares in Trump Media & Technology Group? Was that a good investment? It looks like both of them are down around 70% in value right now and there is credible evidence of outright corruption involving the launch of his coin... but hey, Americans seem to be associating outright corruption with good buisness sense right now, so I guess that's a good thing.
Black Mirror (Score:2)
It is a sad realization that there is no better business strategy today than investing in a digital asset that doesnâ(TM)t have intrinsic value, is volatile, and not super efficient operationally. While Microstrategy is getting away with borrowing money at low rates and hoarding bitcoin, theyâ(TM)re getting themselves signed up for perpetual dividend payments and building a house of cards. The sheer amount of concentration in bitcoin ownership is a massive risk. If only a handful of institution
The words... (Score:2)
"Invest" and "bitcoin" should never appear together in a sentence unless it's a warning that cryptocurrency is not an investment
At best it's a gamble, at worst a scam
Re: (Score:3)
> Then why is it every few months we hear stories about them being on the verge of bankruptcy?
We don't. GameStop faced bankruptcy in 2021 but has been cash-rich since then.
In 2021, short sellers piled on, but were subjected to a crowd-sourced squeeze, causing the share price to soar.
GameStop cashed in on the squeeze by issuing new shares, raising billions in cash.