GameStop’s Stock Plunges Amid Bitcoin Investment Plans
on thursday, GameStop’s stock took a hit, dropping over 25% during the day. This decline came after the company announced a new strategy involving the sale of $1.3 billion in convertible bonds. The funds will be used to buy Bitcoin (BTC) as part of a revised investment policy.
GameStop plans to sell these 0% convertible senior notes, due in 2030, in a private offering. The move aims to diversify the company’s assets, similar to what MicroStrategy has done. However, the timing has left some investors adn analysts puzzled.
Yesterday, GameStop shares jumped 14% in after-hours trading but opened at $25.78 per share. They then fell to a low of $21.16.This volatility reflects uncertainty about the company’s future direction.
Bret Kenwell, an analyst at eToro, expressed doubts. “GameStop’s model is unclear. If Bitcoin is the focus, what happens to the rest of the business?” he asked.
The company also plans to close more stores this year, highlighting ongoing challenges in its retail operations. This has added to investor skepticism about gamestop’s long-term strategy and viability.
