Topline
Shares of GameStop popped in early trading Wednesday, after the video game retailer and meme stock announced a $513 million purchase of bitcoin, which has surged to new record highs in recent weeks as regulatory concerns ease.
The video game retailer previously said it would add bitcoin as a “treasury reserve asset.”
Key Facts
GameStop’s stock rose by more than 3% in premarket trading to over $36, following an earlier announcement the retailer purchased 4,710 bitcoins valued at just over $513 million as of bitcoin’s price of roughly $109,000 Wednesday morning.
The company disclosed the purchase in a Securities and Exchange Commission filing, though it’s unclear when GameStop acquired its first batch of bitcoin.
GameStop said in March the retailer’s board unanimously approved an update to its investment policy to add bitcoin as a “treasury reserve asset.”
The price of bitcoin declined slightly (0.5%) Wednesday morning and has floated around $110,000 in recent days, though the cryptocurrency rallied to a new all-time high above $110,600 on May 21 before setting its latest record near $112,000 the next day.
This is a developing story and will be updated.
