GameStop Corp, the world’s largest known retailer of video games and gaming merchandise, has been advised by Kip Herriage, managing partner at a well-known investment newsletter and podcast called Vertical Research Advisory to invest $2.5 billion of cash into Bitcoin.
NYSE Puts Restrictions on GME Stock
This suggestion has come at a time when the gaming company’s stock saw a significant surge of 234% in short selling volume in just 24 hours. The New York Stock Exchange (NYSE) has put limits restriction on trading GameStop (GME) stock after the price fell down by 22% after the company announced its plan to shift its focus on cryptocurrency.
Reason for Proposing Buying Bitcoin
Kip Herriage proposed buying Bitcoin using the company’s money to make the company’s financial situation a little more stable and improve its position in the market. According to Kip Herriage, investing in the cryptocurrency like Bitcoin could lead to a great deal of growth for the company as investing in Bitcoin acts as an hedge against inflation.
Analysts believe that the gaming company could soar to a $100 if this strategy is executed properly. This move is similar to the strategy that is being used by other companies that have efficiently integrated Bitcoin into their financial system. The biggest examples of such companies include MicroStrategy, Metaplanet, Semler Scientific etc.
Mixed Rection from the Community
Despite Herriage’s optimism, the reactions received from the community members have been mixed. GameStop’s shares were also affected as their experienced a decline of over 25% following the announcement, which was made on March 26, 2025, of raising $1.3 billion convertible note offering for Bitcoin acquisition as a part of company’s new investment strategy.
Critics on the other hand, think that this is a bad idea as this move of investing in Bitcoin may not resonate with shareholder’s interest. The company currently is also dealing with a significant decline in physical game sales and store closures. The company is also currently planning to shut down a significant number of stores in 2025 as a cost-cutting measure. With all of this going on in the background and by looking at Bitcoin’s market volatility, critics think that now is not the time to invest in Bitcoin.
Will GameStop Announce Bitcoin Purchase Soon?
In this situation, the community now awaits announcement regarding GameStop’s first Bitcoin purchase. Even after the company makes the purchase, the question would still linger, will this strategy be able to help the company and bring it to the path of sustainability and growth? Only time will tell.
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