GameStop shed nearly $3 billion in market capitalization on March 27 as investors second-guessed the videogame retailer’s plans to stockpile Bitcoin (BTC), according to data from Google Finance. On March 26, GameStop tipped plans to use proceeds from a $1.3 billion convertible debt offering to buy Bitcoin — an increasingly popular strategy for public companies looking to boost share performance. GameStop’s announcement came a day after it proposed building a stockpile of cryptocurrencies, including Bitcoin and US dollar-pegged stablecoins. Investors initially celebrated the news, sending shares up 12% on March 26.
Source: Google FinanceRelated: GameStop buying Bitcoin would ‘bake the noodles’ of TradFi: Swan execChilly receptionAnalysts say the chilly reception reflects fears GameStop may be seeking to distract investors from deeper problems with its business model. “Investors are not necessarily optimistic on the underlying business,” Bret Kenwell, US investment analyst at eToro, told Reuters on March 27. “There are question marks with GameStop's model.
In 2024, rising Bitcoin prices sent shares of Strategy soaring more than 350%, according to data from FinanceCharts. Founded by Michael Saylor, Strategy has spent more than $30 billion buying BTC since pioneering corporate Bitcoin accumulation in 2020, according to data from BitcoinTreasuries.NET.NET. Strategy’s success prompted dozens of other companies to build Bitcoin treasuries of their own.
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Author / Journalist: Cointelegraph by Alex O’Donnell
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