TLDR
- GameStop moved all 4,710 Bitcoin worth $422 million to Coinbase Prime in what analysts call a likely sale
- A sale at current Bitcoin prices would result in a $76 million loss from the May 2024 purchase at $107,900 per coin
- GME stock fell over 3% following the transfer news despite CEO Ryan Cohen buying $10 million in shares this week
- The company’s Bitcoin peaked at $593 million in value when BTC hit $126,000 in October 2024
- GameStop has not commented on whether it plans to sell its cryptocurrency holdings
GameStop has transferred its complete Bitcoin holdings to Coinbase Prime. The move signals a potential exit from the retailer’s short-lived crypto treasury experiment.
Blockchain analytics firm CryptoQuant identified the transaction on Friday. All 4,710 Bitcoin moved from GameStop’s wallets to the institutional trading platform. The holdings are worth more than $422 million at current prices.
CryptoQuant called the transfer a likely sale. Bitcoin is trading around $90,800, which would mean GameStop takes a $76 million hit on the investment.
The company accumulated its Bitcoin position in May 2024. GameStop purchased 4,710 coins at an average price of $107,900 across multiple transactions.
GameStop hasn’t addressed the speculation publicly. The company declined to respond to media inquiries about its plans for the cryptocurrency.
CEO Doubles Down on GME Shares
The Bitcoin transfer comes days after CEO Ryan Cohen expanded his stake in the company. A Wednesday filing showed Cohen purchased 500,000 GME shares worth over $10 million.
The stock jumped more than 3% on Thursday following that disclosure. But GME gave back those gains and more after news of the Bitcoin transfer broke.
Shares are trading around $22 today, down over 3% from yesterday’s close. The stock has fallen from $35 since GameStop announced its Bitcoin strategy last spring. GME dropped 10% on May 28, the day it completed its Bitcoin purchases.
Cohen met with MicroStrategy chairman Michael Saylor in February 2024 to discuss Bitcoin treasury strategies. GameStop launched its crypto holdings shortly after that meeting.
Bitcoin Treasury Performance Disappoints
GameStop’s Bitcoin holdings reached $593 million in value when the cryptocurrency peaked at $126,000 in October. The company ranked as the 22nd largest corporate Bitcoin holder at that point.
But Bitcoin’s price has dropped considerably since then. The decline has pressured all companies holding crypto on their balance sheets.
Over 190 publicly traded companies now hold Bitcoin. Many added other cryptocurrencies like Ether and Solana to their treasuries in 2024. But shares of these treasury companies tumbled as the market questioned whether the strategy made sense.
Crypto analyst Jacob King criticized GameStop’s Bitcoin purchase as hype-driven. He said Cohen thought it would boost the stock price but is now “quietly jumping ship” after poor results.
Arkham analyst Emmett Gallic first noticed half of GameStop’s Bitcoin moving to Coinbase earlier this week. The company has now transferred the remaining holdings.
Some observers believe GameStop may redeploy the capital elsewhere. GME commentator Reese suggested Cohen wouldn’t take a loss randomly. “Ryan Cohen has been known to be a patient investor,” Reese noted.
The GME stock is up more than 10% year-to-date despite today’s decline.
