5 days ago
Shares of GameStop and Trump Media and Technology Group tumbled connected May 28 arsenic investors reacted to some companies’ recently announced Bitcoin purchases.
Shares of video crippled and collectibles retailer GameStop dropped astir 11% connected May 28 aft the institution announced its archetypal Bitcoin purchase, triggering a classical sell-the-news reaction.
The banal closed astatine $31.21 connected the New York Stock Exchange, according to Google Finance.
The institution announced the acquisition of 4,710 Bitcoin (BTC) valued astatine astir $513 cardinal connected May 28. GameStop confirmed plans to make a BTC treasury strategy connected March 26, pursuing months of capitalist speculation and rumors that it would statesman accumulating the cryptocurrency.
Trump Media and Technology Group (TMTG), the genitor institution of President Donald Trump’s Truth Social platform, besides saw its shares plunge aft announcing a $2.5 cardinal superior rise to acquisition Bitcoin. Since the May 27 announcement, TMTG banal has dropped implicit 24%.
GameStop’s banal has experienced a pullback pursuing the company’s archetypal Bitcoin purchase. Source: TradingViewGameStop’s determination to follow Bitcoin arsenic a treasury reserve plus reflects a increasing inclination among companies turning to Bitcoin to safeguard currency reserves oregon reposition themselves arsenic Bitcoin acquisition vehicles.
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Bitcoin arsenic a hedge against fiat currency inflation
Speaking astatine the Bitcoin 2025 league successful Las Vegas, Nevada, GameStop CEO Ryan Cohen said that “Bitcoin and golden tin beryllium hedges against planetary currency devaluation and systemic risk.” According to Cohen:
"Bitcoin has definite unsocial advantages compared to gold. The portability aspect, it's instantly transferable crossed the globe, whereas golden is bulky and precise costly to ship, the authenticity is instantly verified via the blockchain. You tin easy unafraid Bitcoin successful a wallet, whereas golden requires insurance, and it is precise expensive."The CEO besides cited the absolute scarcity of Bitcoin and the imaginable for gold's ostentation complaint to summation owed to technological advancements arsenic a origin successful favour of choosing Bitcoin implicit golden for semipermanent worth storage.
GameStop CEO Ryan Cohen discusses the rationale for the company’s Bitcoin acquisition. Source: Bitcoin MagazineBitcoin besides has a greater imaginable upside since the integer plus is inactive successful its infancy and continues to beryllium monetized. according to Cohen.
“Gold is simply a much mature market. It is astir astir $20 trillion successful marketplace capitalization, whereas Bitcoin contiguous is astir $2 trillion,” the GameStop CEO said.
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