GameStop's $500 million Bitcoin bet is causing the company to experience significant volatility

Dec 10, 2025 19:40:09

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The publicly traded company GameStop invested $500 million in Bitcoin this spring, and now this asset is causing significant volatility for the company.

According to the company's third-quarter financial report released on Tuesday, the position had a book value of approximately $519 million at the end of September, resulting in over $19 million in unrealized profits. However, at the end of the second quarter, this holding had briefly risen to $528 million, and then recorded an unrealized loss of $9.4 million due to a price drop. During the third quarter, GameStop did not increase or sell any Bitcoin. In 2025, Bitcoin reached new highs driven by crypto-friendly policies in the U.S. However, the crash on October 10 caused prices to fall about 30% from their peak this year, shaking the entire industry. During this collapse, approximately $19 billion in leveraged crypto positions were forcibly liquidated, and several publicly traded companies that benefited from the bull market began to show signs of pressure. In addition to GameStop, non-crypto companies also made significant purchases of Bitcoin this year, including Japanese hotel operator MetaPlanet and Trump Media & Technology Group, which is under Trump. This trend is attributed to President Trump's executive orders strengthening the strategic position of crypto assets within his administration and pushing regulators to implement a light regulatory framework. As the market weakens, the financial performance of these companies is facing severe challenges.

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