GameStop Buys 4,710 BTC: A New Crypto Hedge?

GameStop has announced a $500 million investment in Bitcoin, marking its first major step into the crypto market. The video game retailer now holds 4,710 BTC, positioning the purchase as a potential hedge against rising U.S. debt, inflation, and broader macroeconomic uncertainty.

Despite the bold move, GameStop shares fell 10% after the news, while Bitcoin prices pulled back toward $107,000. For BTC to reach the 127.2% Fibonacci extension at $122,000, it would need a 14% rally. On the downside, $103,800 remains a key support level where price has previously consolidated.

GameStop still has $4.76 billion in cash reserves and hasn’t set a cap on future Bitcoin purchases. CEO Ryan Cohen addressed the Bitcoin 2025 Conference in Las Vegas via pre-recorded video, citing concerns over U.S. debt levels and renewed Trump-era tariffs as motivations for the company’s crypto strategy.