GameStop purchases $500 million in bitcoin in first crypto push

GameStop on Wednesday announced it has bought 4,710 bitcoin, worth over $500 million, as the video game retailer makes its first major foray into cryptocurrency.

In March, GameStop announced that its board of directors had unanimously approved its purchase of bitcoin as a treasury reserve asset.

GameStop's stock price jumped 92 cents, or 2.6%, to $35.97 before the start of trade Wednesday. The shares, dubbed a "meme stock" in recent years as retail investors piled into the company despite its lack of profits, has surged more than 84% over the last 12 months.

GameStop CEO Ryan Cohen, the billionaire co-founder of pet product retailer Chewy, has sought to slash costs to revive the brick-and-mortar retailer.

The company's plunge into bitcoin comes after President Trump's social media company, Trump Media and Technology Group, announced Tuesday it is raising $2.5 billion to invest in bitcoin.

Software maker MicroStrategy last week also disclosed that it now holds more than 580,000 bitcoins, which traded Wednesday for $107,738, according to CoinDesk. Bitcoin prices have surged since Mr. Trump's November re-election, with the president and other administration officials expressing support digital currencies.

Vice President JD Vance is scheduled on Wednesday to speak at the Bitcoin Conference, which bills itself as "the world's largest gathering of bitcoiners." Mr. Trump, then a presidential candidate, was the headline speaker last year.