Rumors become facts
There was rumors for months, now it is fact: GameStop has purchased 4,710 bitcoin worth about $513 million. They published an official filing and announced it today at the Bitcoin Las Vegas conference.
Priced in?
What seems like Big News is in my view already priced into the $GME stock. And I think that for two reasons. One is, if you look at the chart you see an upwards momentum since the announcement of the intention to buy BTC, which was in March. The news today even led to a selloff, stock is down -10% today.
And second, the value of the BTC bought is only $500M, compared to a market cap of $GME being $14B, which is more than 25x bigger. This means the value of the Bitcoin is only a small part of their enterprise value.
Question is, will they buy more in the coming months? Will more companies follow? Bigger ones? What do you think
