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Bitcoin Businesses

GameStop To Invest Corporate Cash In Bitcoin, Following In Footsteps of MicroStrategy 38

Posted by BeauHD from the HODL dept.
GameStop announced it will invest part of its corporate cash in bitcoin and stablecoins, following MicroStrategy's lead. The meme stock jumped more than 6% in extended trading Tuesday following the news. CNBC reports: 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.

"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.
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GameStop To Invest Corporate Cash In Bitcoin, Following In Footsteps of MicroStrategy More

GameStop To Invest Corporate Cash In Bitcoin, Following In Footsteps of MicroStrategy

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  • "investing" in stablecoins? (Score:3, Interesting)

    by davidwr ( 791652 ) on Tuesday March 25, 2025 @08:39PM (#65259501) Homepage Journal

    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)

      by Anonymous Coward

      HOLDING

      HOLDING? Really? Bro doesn't even know what HODLING is!

  • Black Mirror (Score:4, Interesting)

    by Huitzil ( 7782388 ) on Tuesday March 25, 2025 @10:41PM (#65259607)
    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 institutions own all of bitcoin, then the rest of us will just find alternative stores of value. It is not *that* special as an asset.
    • I completely agree. I honestly can't believe more people aren't pointing this out. GameStop is essentially turning it's company into a trading desk. No legit companies should be mixing their core business and trading crypto. We established rules separating banks from investment banks for this reason. Now greed has taken over - Microstrategy is the perfect example - they'll be the one to watch when crypto turns down again, the crypto equivalent of Enron. I guess if you can't make a profitable business,

    • All value is subjective.
      What is intrinsic value?
      The utility value of gold is barely 30% of its trading value. The rest is monetary premium.
      Bitcoins properties do give it some intrinsic value, the utility it has is what makes it valuable to those to hold it.

      Bitcoin is 100% monetary premium. The reasons are its a better ledger. Which is all anything with a monetary value is, its a ledger.

      Volatility is part of anything that increases in value. And the faster it increases, the more volatility it has.

      As for conc

      • I mean my back account has a ledger and itâ(TM)s pretty transparent. And thereâ(TM)s enough checks and balances that if someone steals money from my account I know it is insured and donâ(TM)t have to worry about the value of my money declining by 3-4% one day for the vague promise that hoarding will make money more valuable. It is true that Bitcoin is performing better than all crypto, even though lots of alts mimic its mining and scarcity. Itâ(TM)s the OG and powerful people got in i

        • Your money doesnt decline 3-4% in a day, your right.
          It declines 5-7% a year, every year though.

          There is no vague promise. 16 years of history. Every 4 years (full BTC cycle), it goes up. Like clockwork, without fail.
          Well, to be fair, most of its upward projecting is actually the USD going down. $100.00 USD -7% per year x 4. Worth $74.81 in purchasing power. 25% loss in 4 years alone. And thats the USD, the best currency in the world, the most stable of them all.

          Its promise is simply that no one can print mo

          • Yeah I hear your point on scarcity. That said I think people forget that at one point the USD itself was pegged to gold. There are strong views on the gold standard so not wanting to get into a political debate, but this is not a new concept - maybe new to a generation but money used to be backed by gold. That same standard was rigid enough that it prevented economic growth. Also noting for the record that while the USD itself can lose value relative to goods over time, banks do pay interest, and invest

            • Of course its not a new concept, I agree.

              No need to "peg" a money to a scarce asset, if the asset IS the money. An asset that can reach final settlement each 10mins, instead of days or weeks using the SWIFT system. For small transaction, Level 2's can be used for transactions to settle in seconds.

              As you said, no need to go into a debate, however I would disagree that the gold standard prevented economic growth.

              As for the USD, loss of value and using interest paid by money markets to mitigate it, the problem

          • ... back! Pyrite Pete never went away!

  • The words... (Score:5, Insightful)

    by MpVpRb ( 1423381 ) on Tuesday March 25, 2025 @11:54PM (#65259709)

    "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

  • Is to be a giant company holding some bitcoin then and proclaim on every news outlet that you plan to purchase a ton of it.

    The press is what drives bitcoin volatility.

  • That headline should read, "GameStop to Gamble Corporate Cash on Bitcoin"
  • Regardless of if you love or hate bitcoin, it is the best performing asset in history (yes you can independently verify this statement). So it would make sense to hold it in your companies treasury.
    • So were dot com companies, until they weren't. There is no intrinsic value in bitcoin. Quantum computers could come along tomorrow and generate enough bitcoin to kill its scarcity, the only thing underpinning its value, for example. But there are too many greedy folks frothing at the mouth because "it keeps going up", so that's what's driving this insanity.

      • Quantum computing is not a threat to bitcoin mining since it is a SHA-256 process and there's no known QC algorithm that threatens it. Even assuming your claim that QC could mine all of the remaining bitcoin quickly (it can't), the scarcity of the 21 million coin limit is coded into the protocol. QC doesn't have the capacity to change the protocol.

        Quantum computing IS a threat to public key cryptography because there's a known algorithm to derive the private key from a public key. This isn't a problem for

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