GameStop (GME) is one of the consumer companies that may be taking a hit on paper from the slide in Bitcoin (BTC-USD).
The retailer reported Bitcoin holdings were valued at $519.4M at the close of its third quarter. That’s when the cryptocurrency was swapping hands at over $110K per Bitcoin (BTC-USD). At today’s Bitcoin (BTC-USD) price of $73,700, the value of the company’s crypto holdings may be lower, depending on potential purchases or sales since November 1. Regarding that, on-chain analytics firm CryptoQuant reported that GameStop (GME) transferred its entire Bitcoin (BTC-USD) holdings to Coinbase Prime around January 23. It’s unclear if the Bitcoin holdings were sold before the recent slide.
In general, GameStop (GME) CEO Ryan Cohen has described Bitcoin (BTC-USD) primarily as a macro hedge, although he has also downplayed it relative to other capital allocation priorities. Recently, Cohen has moved even further away from being looked at as a Strategy (MSTR)-type Bitcoin proxy as the company pursues M&A options. In a media interview last week, Cohen said the new strategy is more attractive than Bitcoin.
Shares of GameStop (GME) are up more than 22% on a year-to-date basis.