GameStop’s Bitcoin Bet Flops: Stock Tumbles 20%
- GameStop stock plummets after announcing a $1.75 billion convertible note offering.
- Despite Bitcoin adoption, GameStop’s stock continues to struggle, sparking online criticism and skepticism.
GameStop’s (GME) stock took a nosedive, dropping over 20% in after-hours trading after revealing plans for a $1.75 billion private convertible note offering.
The move, aimed at strengthening its financial position, sparked speculation about potential Bitcoin [BTC] acquisitions as part of its broader capital deployment strategy.
After trading at $28.55, GME dropped to $22.14 at press time, following a 22.45% decline, as per Google Finance.
GameStop’s plan of action
Announced on the 11th of June, the offering, targeted at institutional investors under Rule 144A, includes an option to raise an additional $250 million within 13 days of issuance.
This reflects GameStop’s continued pivot toward long-term debt financing.
GameStop hasn’t explicitly confirmed that the proceeds from its latest $1.75 billion convertible note offering will go toward Bitcoin.
However, the company stated that future investments will align with its established investment policy, leaving the door open for further crypto exposure.
In fact, the company had previously used part of its $1.5 billion convertible raise to purchase 4,710 BTC on the 28th of May, worth $513 million at the time.
That buy made GameStop the 13th largest corporate holder, according to BitcoinTreasuries.NET.
The crowd reacts with fire and fury
This obviously broke the internet into criticism as noted by an X user who said,
“GME stock crashing AH on this news.”
Echoing similar sentiments, another X user added,
“I’ve never seen anything like it… Someone throws $300,000 on GameStop 50 C’s expiring in 9 days… These are 72% out of the money. INSANE.”
Bitcoin not equal to stock salvation
This shows that GameStop’s pivot to Bitcoin, though bold, hasn’t yielded the stock boost seen by other crypto-adopting firms.
In fact, following its Bitcoin purchase confirmation on the 28th of May, GME stock had plunged 19.33%, including an 11.7% after-hours drop.
It erased all gains made since the 25th March announcement of its crypto adoption strategy.
Despite the board’s unanimous approval to align with Bitcoin-focused models like MicroStrategy’s, investor response remains cautious.
In conclusion, GameStop’s experience suggests that market confidence hinges on more than just headline adoption. 😜
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2025-06-13 12:15