Saylor explains drop in GameStop and Trump Media stock prices following Bitcoin purchase.

Michael Saylor’s company, Strategy, has made headlines due to its aggressive Bitcoin acquisition strategy, which has propelled its market cap to over £59.06 billion ($80 billion). With more than 580,000 Bitcoins in its possession, Strategy stands as the largest corporate holder of Bitcoins globally, with a total value exceeding £24 billion ($33 billion). The company’s shares have surged by over 100% in the past year, reflecting the positive momentum generated by its Bitcoin play.

Notably, Strategy’s bold move into Bitcoin has inspired a wave of companies worldwide to follow suit. Entities like Trump Media, Tesla, GameStop, Tether, SoftBank, Riot Platforms, Acurx Pharma, Strike, and Metaplanet have all started integrating Bitcoin into their balance sheets. This trend emerges as Bitcoin prices reach record highs, recently hitting £82,691 ($112,000).

However, despite the enthusiasm from corporate entities, Wall Street remains somewhat cautious about this escalating trend of buying Bitcoin. This caution is evident in the recent market reactions observed with shares of Trump Media and GameStop dipping by close to 20% following their Bitcoin announcements. Michael Saylor, in an interview at Bitcoin 2025 in Las Vegas, acknowledged the short-term dynamics at play, indicating that corporate adoption of Bitcoin on balance sheets has proven to be highly popular in the long run.

Regarding Trump Media’s and GameStop’s moves into Bitcoin, Saylor described them as courageous, aggressive, and intelligent. He emphasized the significance of these announcements in marking a pivotal shift in corporate financial strategies. Saylor also pointed out that the market’s tepid response to these developments could be influenced more by structural financing dynamics than skepticism towards Bitcoin.

Saylor highlighted GameStop’s earlier foray into Bitcoin, which saw its stock price surge by 50%. This surge enabled the company to capitalize on its momentum by raising £1.10 billion ($1.5 billion) through a convertible bond raise. Trump Media followed a similar path by raising funds via a convertible bond offering. While these financing options may create short-term pressure on stock prices, Saylor believes they will ultimately benefit investors in the long run.

Meanwhile, at the governmental level, the US continues to make strides in its Bitcoin agenda. Following President Donald Trump’s executive order to establish a US Strategic Bitcoin Reserve, Vice President JD Vance recently spoke in favor of cryptocurrencies as an inflation hedge. Additionally, the US Department of Labor repealed its guidance discouraging Bitcoin investments in retirement plans, further indicating the government’s growing interest in cryptocurrencies.

In the global arena, while some corporate leaders remain wary of adopting crypto, Saylor remains optimistic about Bitcoin’s future. He asserts that the expanding interest in Bitcoin, particularly in various regions worldwide, points to an era of explosive growth in digital capital. As more actors enter the ecosystem, Saylor believes Bitcoin’s network becomes more distributed, robust, and trustworthy, attracting larger economic players over time.

In conclusion, Strategy’s bold Bitcoin acquisition strategy has not only placed it at the forefront of corporate Bitcoin ownership but has also sparked a broader trend of companies integrating Bitcoin into their balance sheets. Despite initial skepticism from some quarters, the growing interest and adoption of Bitcoin by both corporate and governmental entities reflect a paradigm shift in the financial landscape towards embracing digital assets.