GameStop (GME) Stock Dips After $513M Bitcoin Purchase: Sell-the-News Event?

%3Cp%3EShares%20of%20video%20game%20and%20collectibles%20retailer%20GameStop%20dropped%20nearly%2011%25%20on%20May%2028%20after%20the%20company%20announced%20its%20first%20Bitcoin%20purchase%2C%20triggering%20a%20classic%20sell-the-news%20reaction.%20%3C/p%3E%3Cp%3EThe%20stock%20closed%20at%20%2431.21%20on%20the%20New%20York%20Stock%20Exchange%2C%20according%20to%20Google%20Finance.%20%3C/p%3E%3Cp%3EThe%20company%20announced%20the%20purchase%20of%204%2C710%20Bitcoin%20(BTC)%20valued%20at%20roughly%20%24513%20million%20on%20May%2028.%20GameStop%20confirmed%20plans%20to%20create%20a%20BTC%20treasury%20strategy%20on%20March%2026%2C%20following%20months%20of%20investor%20speculation%20and%20rumors%20that%20it%20would%20begin%20accumulating%20the%20cryptocurrency.%3C/p%3E%3Cp%3ETrump%20Media%20and%20Technology%20Group%20(TMTG)%2C%20the%20parent%20company%20of%20President%20Donald%20Trump%E2%80%99s%20Truth%20Social%20platform%2C%20also%20saw%20its%20shares%20plunge%20after%20announcing%20a%20%242.5%20billion%20capital%20raise%20to%20purchase%20Bitcoin.%20Since%20the%20May%2027%20announcement%2C%20TMTG%20stock%20has%20dropped%20over%2024%25.%3C/p%3E%3Cfigure%3E%3Cimg%20alt%3D%22GameStop%E2%80%99s%20stock%20has%20experienced%20a%20pullback%20following%20the%20company%E2%80%99s%20first%20Bitcoin%20purchase.%20Source%3A%20TradingView%22%20src%3D%22https%3A%2F%2Fipowercrypto.com%2Fwp-content%2Fuploads%2F2025%2F05%2F01971882-3379-79ef-bf32-c4e12483baf8.png%22%20title%3D%22%22%2F%3E%3C%2Ffigure%3E%3Cp%3EGameStop%E2%80%99s%20move%20to%20adopt%20Bitcoin%20as%20a%20treasury%20reserve%20asset%20reflects%20a%20growing%20trend%20among%20companies%20turning%20to%20Bitcoin%20to%20safeguard%20cash%20reserves%20or%20reposition%20themselves%20as%20Bitcoin%20acquisition%20vehicles.%3C/p%3E%3Ch2%3EBitcoin%20as%20a%20hedge%20against%20fiat%20currency%20inflation%3C/h2%3E%3Cp%3ESpeaking%20at%20the%20Bitcoin%202025%20conference%20in%20Las%20Vegas%2C%20Nevada%2C%20GameStop%20CEO%20Ryan%20Cohen%20said%20that%20%E2%80%9cBitcoin%20and%20gold%20can%20be%20hedges%20against%20global%20currency%20devaluation%20and%20systemic%20risk.%E2%80%9D%20According%20to%20Cohen%3A%3C/p%3E%3Cblockquote%3E%22Bitcoin%20has%20certain%20unique%20advantages%20compared%20to%20gold.%20The%20portability%20aspect%2C%20it’s%20instantly%20transferable%20across%20the%20globe%2C%20whereas%20gold%20is%20bulky%20and%20very%20expensive%20to%20ship%2C%20the%20authenticity%20is%20instantly%20verified%20via%20the%20blockchain.%20You%20can%20easily%20secure%20Bitcoin%20in%20a%20wallet%2C%20whereas%20gold%20requires%20insurance%2C%20and%20it%20is%20very%20expensive.%22%3C/blockquote%3E%3Cp%3EThe%20CEO%20also%20cited%20the%20absolute%20scarcity%20of%20Bitcoin%20and%20the%20potential%20for%20gold’s%20inflation%20rate%20to%20increase%20due%20to%20technological%20advancements%20as%20a%20factor%20in%20favor%20of%20choosing%20Bitcoin%20over%20gold%20for%20long-term%20value%20storage.%3C/p%3E%3Cfigure%3E%3Cimg%20alt%3D%22GameStop%20CEO%20Ryan%20Cohen%20discusses%20the%20rationale%20for%20the%20company%E2%80%99s%20Bitcoin%20acquisition.%20Source%3A%20Bitcoin%20Magazine%22%20src%3D%22https%3A%2F%2Fipowercrypto.com%2Fwp-content%2Fuploads%2F2025%2F05%2F01971880-ffc7-7a0b-ac16-7eb3ed13c076.png%22%20title%3D%22%22%2F%3E%3C%2Ffigure%3E%3Cp%3EBitcoin%20also%20has%20a%20greater%20potential%20upside%20since%20the%20digital%20asset%20is%20still%20in%20its%20infancy%20and%20continues%20to%20be%20monetized%2C%20according%20to%20Cohen.%3C/p%3E%3Cp%3E%E2%80%9cGold%20is%20a%20more%20mature%20market.%20It%20is%20roughly%20around%20%2420%20trillion%20in%20market%20capitalization%2C%20whereas%20Bitcoin%20today%20is%20about%20%242%20trillion%2C%E2%80%9D%20the%20GameStop%20CEO%20said.%3C/p%3E