GameStop’s Bitcoin Blunder: A Comedy of Errors! 😂💸

by

Ah, the tragic tale of GameStop, a retailer of video games and collectibles, whose shares plummeted by nearly 11% on this fateful day, May 28. The cause? A bold announcement of their first Bitcoin purchase, which, as expected, triggered a classic sell-the-news reaction. How delightfully predictable! 🎭

The stock, in a fit of despair, closed at $31.21 on the New York Stock Exchange, as reported by the ever-reliable Google Finance. One can only imagine the boardroom discussions: “Let’s buy Bitcoin! What could possibly go wrong?”

In a move that could only be described as audacious, the company revealed it had purchased 4,710 Bitcoin (BTC) valued at approximately $513 million. This announcement came after months of investor speculation, like a soap opera that just wouldn’t end. GameStop had confirmed plans for a BTC treasury strategy back on March 26, but who could have predicted this outcome? Oh, right—everyone! 🙄

Meanwhile, the Trump Media and Technology Group (TMTG), the proud parent of President Donald Trump’s Truth Social platform, also saw its shares dive after announcing a $2.5 billion capital raise to purchase Bitcoin. Since the May 27 announcement, TMTG stock has dropped over 24%. It seems the only thing rising is the drama! 🎢

GameStop’s foray into Bitcoin as a treasury reserve asset reflects a growing trend among companies attempting to safeguard their cash reserves. Or perhaps they just wanted to join the cool kids’ club of Bitcoin acquisition vehicles. Who knows? 🤷‍♂️

Bitcoin: The New Gold? Or Just Fool’s Gold? 💰

At the Bitcoin 2025 conference in Las Vegas, GameStop CEO Ryan Cohen proclaimed that “Bitcoin and gold can be hedges against global currency devaluation and systemic risk.” A noble sentiment, indeed! 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.”

Ah, the sweet sound of logic! The CEO also pointed out the absolute scarcity of Bitcoin and the potential for gold’s inflation rate to increase due to technological advancements. It seems Bitcoin is the new darling of long-term value storage. Who would have thought? 😏

Bitcoin, according to Cohen, has a greater potential upside since this digital asset is still in its infancy and continues to be monetized. Meanwhile, gold is just sitting there, all mature and stuff. “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, as if comparing apples to oranges. 🍏🍊

Read More

2025-05-29 00:16