GameStop Buys Bitcoin: Smart Strategy or Big Mistake?
As dubious as it may seem, GameStop Corp (NYSE:)’s shift to could pay off over time. Evidently, the gaming resale industry is dead money; investing in BTC provides a path forward, but it will be a long road to travel.
The most recent news is that the company made its first purchases, about 4,700 Bitcoins for $512.6 million.
At this pace, assuming the price of Bitcoin remains stable and the core business profitable, the company can amass roughly 43,730 BTC before it will need to seek additional funding.
The question is whether its cash hoard and core business can sustain the operating long enough for it to profit from the move, and the answer is maybe. It depends on several factors, including the price of Bitcoin, its adoption rate, and…
