GameStop (GME) stock sank nearly 10% in early trading on Wednesday after the video game retailer announced it purchased 4,710 bitcoin (BTC-USD).
With bitcoin trading around $108,000 per token, the investment is valued at over $500 million. The token reached a record high north of $111,000 last week.
In March, the company, led by billionaire Ryan Cohen, formally announced that its board unanimously approved adding the cryptocurrency as a treasury reserve asset.
Subsequently, the meme stock tumbled nearly 25% in one session after the retailer said it intended to raise $1.3 billion via convertible senior notes to purchase bitcoin.
Public companies have increasingly added bitcoin to their balance sheets, following the lead of Strategy (formerly MicroStrategy) (MSTR), the largest corporate holder of bitcoin.
On Tuesday, Trump Media & Technology Group (DJT) unveiled plans to raise $2.5 billion to create what it claims will be one of the largest bitcoin treasuries held by any public company.
Shares of Trump Media, which are majority owned by President Trump, fell over 10% following the announcement.
“We’re at a space where people are racing to put this on their balance sheet,” BitcoinIRA co-founder & coo Chris Kline told Yahoo Finance on Wednesday morning.
