GameStop will transfer all Bitcoin reserves to a compliant platform, is a large-scale sell-off imminent?

Source: PortaldoBitcoin Original Title: GameStop sends all Bitcoin reserves to Coinbase; dump coming? Original Link:

Background

This week, concerns have arisen in the crypto market that GameStop may be about to abandon its Bitcoin treasury strategy. On-chain data indicates that the video game retailer has transferred 100% of its Bitcoin reserves to a compliant platform’s custody service, a move that typically signals large-scale institutional selling.

According to data from crypto analytics firm CryptoQuant, wallets associated with GameStop purchased 4,710 Bitcoins between May 14 and 23 at an average price of $107,900, investing approximately $504 million. Now, these Bitcoins have been transferred to an address on a compliant platform, with the current Bitcoin trading price around $90,800. This move has triggered market alarms, suggesting a potential large-scale sell-off, especially during a weak market.

Potential Losses

If the sale is confirmed, this transaction could represent significant losses. GameStop bought these Bitcoins between May 14 and 23, 2025, at an average price of $107,900, with a total investment of about $504 million. With Bitcoin currently trading near $88,800, closing this entire position could result in losses of approximately $86 million.

Strategic Shift

This move surprised the market because Bitcoin purchases were initially announced as part of a long-term strategy. At that time, GameStop stated that after completing a $1.5 billion convertible senior bond issuance, it had acquired 4,710 Bitcoins, marking the establishment of a corporate treasury based on mainstream cryptocurrencies.

Back then, CEO Ryan Cohen even hinted that the company would follow in the footsteps of MicroStrategy (now Strategy). In March 2025, Cohen appeared alongside Michael Saylor, who has become a market icon for his corporate Bitcoin accumulation model.

Historical Background

GameStop is known worldwide for the 2021 “meme stock” phenomenon. Investors on forums like Reddit fought against short-selling funds, triggering one of the largest short squeezes in recent financial market history, led by the iconic figure Roaring Kitty.