GameStop (GME) Stock: Retailer Transfers Entire Bitcoin Holdings to Coinbase Sparking Sale Speculation

TLDR

• GameStop transferred its entire 4,710 Bitcoin holdings worth over $422 million to Coinbase Prime, suggesting a potential sale
• The company would realize approximately $76 million in losses if sold at current prices, having purchased Bitcoin at an average of $107,900 in May 2024
• CEO Ryan Cohen recently bought 500,000 GME shares worth over $10 million, pushing the stock price up 3% on Thursday
• GameStop’s Bitcoin holdings peaked at $593 million when BTC hit $126,000 in October before declining
• GME stock dropped over 3% today following reports of the potential Bitcoin sell-off

GameStop has moved all of its Bitcoin to Coinbase’s institutional trading platform. The transfer has sparked questions about whether the video game retailer is abandoning its crypto treasury strategy.

Blockchain intelligence platform CryptoQuant spotted the move on Friday. GameStop transferred 4,710 Bitcoin worth more than $422 million to Coinbase Prime. The platform posted on X asking if “GameStop throws in the towel?”

CryptoQuant said the transfer was “likely to sell” the holdings. A sale at Bitcoin’s current price of around $90,800 would mean GameStop realizing roughly $76 million in losses.

GameStop Corp., GME

The company bought its Bitcoin stash in May 2024. It accumulated 4,710 Bitcoin across several purchases at an average price of $107,900 per coin.

GameStop hasn’t publicly commented on the speculation. The company didn’t respond to requests for comment about whether it sold or plans to sell its Bitcoin.

The move follows a Wednesday filing that revealed CEO Ryan Cohen bought another 500,000 GME shares. The purchase was worth over $10 million. GameStop’s share price rose more than 3% on Thursday after the news broke.

Bitcoin Treasury Strategy Under Pressure

GameStop launched its Bitcoin treasury after Cohen met with Strategy chair Michael Saylor in February 2024. The two discussed how to implement such strategies effectively.

The company’s Bitcoin holdings were worth around $593 million in October when Bitcoin rallied to $126,000. At that point, GameStop ranked 22nd among Bitcoin treasury companies.

The value has dropped sharply since then. Bitcoin’s price decline has put pressure on companies holding crypto on their balance sheets.

More than 190 publicly traded companies currently hold Bitcoin. Many others launched Ether, Solana, and altcoin treasuries over the last year. But shares of treasury companies tumbled in late 2024 as questions emerged about the sustainability of these strategies.

Stock Performance Takes Hit

GME stock has fallen considerably since the Bitcoin acquisition announcement in May 2024. The stock dropped from a high of $35 and fell as much as 10% on May 28, the day GameStop acquired its full Bitcoin position.

The stock is trading around $22 today, down over 3% following reports of the potential coin sale. GME remains up more than 10% year-to-date.

Yesterday, GME stock jumped as much as 6% after Cohen revealed he bought 1 million shares worth over $22 million.

Arkham analyst Emmett Gallic first flagged a transfer of 2,396 Bitcoin to Coinbase earlier this week. That amount represented half of GameStop’s holdings. The company has now moved the remaining Bitcoin to the exchange.

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