It appears that GameStop (GME) stock hit the wall on Thursday as it earned a huge profit thanks to the company’s announcement of BTC investment. On Tuesday, gaming retailer announced that it would begin investing in Bitcoin. New Funding Plans For Wednesday’s venture. GME stocks rose in double digits this week before Thursday, but these stocks have been sank since they sank.
GME stocks fell 22.82% on Thursday, completely reversing profits they earned over the last week. GameStop erased a quarter of its value and reduced its market capitalization by $3 billion. The Falloff represents the company’s biggest decline since June 2024. On Wednesday afternoon, GameStop announced plans to sell $1.3 billion in convertible bonds to fund Bitcoin purchases. The move follows in the footsteps of a huge strategy for Bitcoin investment run by Michael Saylor.
The track record of companies employing Bitcoin Reserve shows outstanding stock performance in recent history. According to data from Bitcoin Treasuries, around 88 public companies currently own around 665,030 BTC, making it the second largest category of Bitcoin holders after ETFs and such investment vehicles. Therefore, investors will hope that Thursday’s fall will be temporary.
Unlike its strategy, however, GameStop (GME) stocks responded negatively to fundraising news. Companies selling large convertible debt sales tend to face short-term sales pressure. GameStop wasn’t different on Tuesday. The premiums GameStop is trying to offer in bonds are less than the roughly 55% premium on similar issues from its November strategy. Recently, the strategy sold $2 billion in February, offering investors a more lucrative 35% premium. It suggests that investors are demanding more from the gaming giant, along with growing conditions for equipment like debt provided by strategy.
Gamestop shares closed at $22.08 per share on Tuesday.
