GameStop Potentially Liquidating Bitcoin Holdings While Strategy Surpasses 700,000 BTC Milestone

Contrasting Corporate Bitcoin Strategies

The corporate Bitcoin landscape is showing stark divergence as Strategy expands its holdings to record levels while GameStop appears to be potentially exiting its position just months after entering the market.

Strategy Crosses 700,000 Bitcoin Threshold

Strategy officially surpassed the 700,000 Bitcoin milestone on January 20, acquiring an additional 22,305 BTC at an average price of $95,284 per coin, bringing total holdings to approximately 709,715 Bitcoin ^[1]. This represents over 3% of Bitcoin's total circulating supply, cementing the company's position as the world's largest corporate holder of the cryptocurrency ^[1].

The purchase was financed through approximately $2.125 billion in net proceeds raised between January 12 and 19 via at-the-market equity and preferred stock programs ^[1]. The sale included 2.95 million STRC variable-rate preferred shares, 10.4 million MSTR Class A common shares, and smaller amounts of STRK preferred stock ^[1].

Despite the milestone, Strategy's stock fell over 7% in early trading on Tuesday as Bitcoin's price declined ^[1]. The cryptocurrency dropped more than 5% in 36 hours, falling below $90,000 amid macro uncertainty and scrutiny of corporate Bitcoin treasuries ^[1]. A sharp $4,000 decline on Sunday night was accompanied by over $500 million in liquidations in crypto derivatives ^[1].

Analyst Concerns and Institutional Interest

Analysts attribute MSTR's recent price weakness to the issuance of millions of new shares to fund Bitcoin purchases, with TD Cowen cutting its price target to $440 citing a "weaker outlook for Bitcoin yield" ^[1].

However, institutional interest remains notable. Vanguard Group disclosed a $505 million investment in MSTR last week, marking its first entry into the company's stock ^[1]. Technical analysts have identified an inverted head-and-shoulders pattern on the daily chart, suggesting potential bullish reversal if shares sustain a breakout above $175, though failure to hold above $168 could trigger a drop below $160 ^[1].

GameStop's Potential Bitcoin Exit

In stark contrast, on-chain analyst Sani reported on January 20 that GameStop transferred 2,296 BTC to Coinbase Prime, following an earlier transfer of 100 BTC on January 18 ^[2]. These transactions represent approximately half of GameStop's total holdings of 4,710 Bitcoin ^[2].

Sani, founder of TimechainIndex.com, indicated that the transfers went to a deposit wallet at Coinbase Prime, suggesting potential sales rather than internal transfers ^[2]. However, no official confirmation has been provided by GameStop.

GameStop initially purchased 4,710 BTC in May 2025 for $500 million, implying an average purchase price of $106,157 per coin ^[2]. The company had raised $1.48 billion through convertible bonds in early April, but delayed its Bitcoin purchase until late May, missing the opportunity to buy at lower prices around $74,450 in April ^[2].

CEO Ryan Cohen had emphasized that GameStop would pursue its own strategy, stating "GameStop follows GameStop's strategy. We don't follow someone else's strategy" ^[2]. He also indicated the company would not announce moves in advance ^[2].

Implications of Potential Sale

If confirmed, the sale would represent approximately 51% of GameStop's Bitcoin holdings worth just over $200 million at current prices ^[2]. With Bitcoin trading around $90,000, this would constitute a roughly 15% loss from the purchase price ^[2].

GameStop ranked 22nd among publicly traded Bitcoin holders with its 4,710 BTC position ^[2]. Official confirmation of the company's current holdings is expected at the end of March when fourth-quarter fiscal year 2025 results are released ^[2].

While the potential sale volume would have minimal direct market impact—Strategy alone purchased 22,305 BTC for $2.13 billion in its latest acquisition—it could carry negative signaling effects for corporate Bitcoin adoption ^[2].