Bitcoin Dips Despite GameStop’s BTC Purchase and K33’s Treasury Announcement
Bitcoin (BTC) is currently trading around $107,000 on Wednesday, a decline despite recent news of GameStop’s purchase of 4,710 BTC, valued at approximately $508 million, and K33’s plans to launch its Bitcoin treasury.
GameStop’s Bitcoin Acquisition
Video game retailer GameStop has made its first foray into Bitcoin, acquiring 4,710 BTC, according to a filing with the Securities and Exchange Commission (SEC) on Wednesday. The company did not disclose the exact price or timing of the Bitcoin purchase. However, based on the current market price of BTC, their holdings are worth around $508 million.
This acquisition follows GameStop’s $1.3 billion convertible note offering in March, part of a broader strategy to include Bitcoin as a treasury asset.
GameStop’s stock (GME) initially surged over 6% in pre-market trading following the announcement but later fell by more than 10%.
GME shares were a key driver of the meme coin frenzy in 2021, with investors from the WallStreetBets subreddit driving its price up by over 1,600%. This surge triggered a short squeeze, potentially causing losses for hedge funds holding large short positions in the stock.
K33’s Bitcoin Treasury Plans
Meanwhile, digital asset research and custody firm K33 announced that it has signed an investment agreement with shareholders Klein Group, Middelborg Invest AS, Tigergutt Invest AS, and Modiola AS to raise 60 million Swedish krona, approximately $6.2 million.
The company intends to use these funds to purchase Bitcoin and launch its new approved Bitcoin treasury. K33 views this development as part of its support for Bitcoin becoming a part of the “global financial system.”
“I am excited to now begin the process of building a solid balance sheet backed by Bitcoin, not only as a strong conviction investment, but more importantly, as a strategic enabler for K33 as a leading crypto broker,” said Torbjørn Bull Jenssen, CEO of K33, in a press release on Wednesday.
The moves by GameStop and K33 reflect a growing trend among financial institutions to position Bitcoin as a strategic reserve asset, following a strategy similar to that of MicroStrategy.
Bitcoin’s Price Decline
Bitcoin is trading at $107,700, down 2.3% in the last 24 hours, despite these recent announcements. The leading cryptocurrency has now extended its weekly loss to 1.5%.
This recent decline follows an increase in profit-taking activity by long-term Bitcoin holders, those who have held the asset for between one and five years. Their sales volume reached $4.02 billion in May, the highest since February, according to data from Glassnode.
The most significant selling pressure came from holders within the three-to-five-year range, who recorded total outflows of $2.6 billion. This was followed by Bitcoin holders of two to three years, who contributed $1.41 billion in outflows, while holders in the one-to-two-year range sold approximately $450 million in BTC.
This increased profit-taking behavior by long-term holders could hinder Bitcoin’s bullish momentum despite growing institutional demand.
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