Summary
Ryan Cohen, the CEO of GameStop, one of the leading American video gaming merchandise dealers, has officially announced that the company has purchased Bitcoins worth over $505 million. He explained why the company has purchased over $500 million in BTC in an interview with the CEO of Nakamoto, David Bailey, at the Bitcoin Conference in Las Vegas.
Ryan claims that their company currently owns 4710 Bitcoin and announced that GameStop is just following GameStop’s strategy and was not trying to follow anyone else.
“Bitcoin has certain unique advantages better than gold.” Says Ryan Cohen
GameStop, a prominent video gaming merchandise dealer in America, previously announced that its board of directors had approved the purchase of Bitcoin as a reserve asset. GameStop has now officially announced their accusation of 4710 Bitcoins that worth around $505 million, in a May 28th Tweet, and their CEO has confirmed the news at the Bitcoin Conference in Las Vegas.
The news of the Bitcoin purchase fueled the stock price of GameStop, and the price surged 2.6% and reached $35.97 before the start of Wednesday. The company’s announcement of the Bitcoin purchase came after Trump’s social media company’s plan to invest 2.5 billion in Bitcoin.
He started the interview by explaining his initial days at the company. Cohen stated that when he took over, the company had been a piece of crap, losing a lot of money and under a lot of pressure while transitioning from physical gains to digital downloads. He emphasized that it was necessary to cut costs very aggressively, bringing in physical discipline, and mentioned that they managed to achieve that. He added that retail was a tough business, but there was a significant focus on getting costs under control.
Ryan Cohen has mentioned that the organization is going to add Bitcoin to its balance sheets and find Bitcoin a better option than gold. He commented that if the thesis was correct, then Bitcoin and gold could be a hedge against global currency devaluation and systemic risk. He also stated that Bitcoin had certain unique advantages over gold. Cohen also stated that you can easily secure Bitcoin in a wallet, whereas gold requires insurance and is very expensive; he also mentioned that there is the element of scarcity to consider. He added that there is a fixed supply of Bitcoin, whereas the supply of gold is still uncertain.
Bitcoin and Its Enhanced Corporate Adoption Change the Game!
Bitcoin strategic treasury asset has been a growing trend among corporate operations nowadays. The multibillion-dollar companies like Tesla and Square have already established their strategic Bitcoin reserve programs, and the latest firm to join the list is GameStop. Ryan Cohen’s support for BTC over gold indicates the shift of focus to a new type of institutional interest. Cohen claimed that Bitcoin is portable, instantly transferable across the globe, and easy to verify via blockchain.
He contrasted it with gold, mentioning that gold is bulky, expensive to ship, and harder to authenticate. He added that gold requires storage facilities, security, and insurance, whereas Bitcoin just requires a secure key. He noted that technological advances could still increase the supply of gold, but with Bitcoin, the limit is hard-coded, which makes it uniquely sound.
The latest announcement from GameStop to invest $500 million worth of BTC is one of the largest single corporate allocations. Before Gamestop, Microstrategy unveiled its Bitcoin holdings of more than 580,000 bitcoins just a few days ago. This advanced move from GameStop indicates its futuristic approach and a new chapter. Cohen announced that they believed in asymmetric upside and noted that Bitcoin gives them exposure to a decentralized financial future, which aligns with where their customers and the broader market are heading.